FxWirePro: AUD/USD rallies on jobs surge, heads to test key resistance

• AUD/USD climbed    on Thursday  after Australia's June labour market data significantly exceeded expectations, prompting markets to increase bets that the Reserve Bank of Australia will need to raise interest rates again to keep inflation in check.

•   Australian employment surged by 76.4k in June, far surpassing market expectations for a 15.3k increase, while the unemployment rate remained unchanged at 4.4%.

• Figures from the Australian Bureau of Statistics showed employment jumped by 76,300 in June from May, marking the largest monthly increase since April last year. The data comfortably exceeded forecasts for a 15,300 rise and lifted the annual pace of employment growth to 1.7% from 1.0%, underscoring the strength of Australia's labour market..

• The ​jobless rate stayed at 4.4% as expected thanks to a rise in the participation rate to a one-year high ​of 67.0%.

• Market attention now shifts to Australia's second-quarter CPI report due next Wednesday, which is likely to be the decisive factor in shaping the central bank's next policy move.

•  Immediate resistance is located at 0.7020(Higher BB), any close above will push the pair towards 0.7052(50%fib).

•  Support is seen at 0.6989(Daily low) and break below could take the pair towards 0.6957(61.8%fib).

 Recommendation: Good to buy around 0.7000 with stop loss of 0.6930  and target price of 0.7080