• AUD/USD edged lower on Thursday as despite Australian employment data coming in stronger than expected.
• Australian data showed employment bounced back by 40,300 in May, though that was balanced by a sharp downward revision for April to a 40,600 drop. The unemployment rate eased back a tick to 4.4% as expected, but hours worked fell sharply.
• Household spending rebounded by 1.3% in May, offsetting a 1.1% drop in April and suggesting consumers were holding up in the face of high petrol prices and rising interest rates.
• The Reserve Bank of Australia has raised rates three times this year in an attempt to cool demand and restrain inflation, a task made easier by the rapid retreat in oil prices.
• Immediate resistance is located at 0.6995(50%fib), any close above will push the pair towards 0.7046(SMA20).
• Support is seen at 0.6875(61.8%fib) and break below could take the pair towards 0.6842(LowerBB).
Recommendation: Good to sell around 0.6900 with stop loss of 0.7000 and target price of 0.6860
