• AUD/USD came under pressure on Thursday after Australia’s July employment report showed an unexpected decline in jobs.
• Australian employment unexpectedly fell in July, while the unemployment rate rose to its highest level since late 2021, pointing to a cooling labour market and reducing pressure on the Reserve Bank of Australia to raise interest rates again.
• Australian Bureau of Statistics data showed employment fell by 15,800 in July, following a revised 80,300 increase in June and missing forecasts for a 15,000 gain. However, full-time employment rose by 16,300.
•The unemployment rate edged up to 4.5%, above the 4.4% forecast and already matching the Reserve Bank of Australia’s year-end projection.
• Attention will now turn to the RBA’s August meeting minutes, due on August 25. Investors will look for details on how seriously policymakers considered another rate increase and how they assess the balance between persistent inflation and a slowing labour market.
• Immediate resistance is located at 0.7138 (Higher), any close above will push the pair towards 0.7166(38.2%fib).
• Support is seen at 0.7078(38.2%fib) and break below could take the pair towards 0.7045( (SMA 20).
Recommendation: Good to buy around 0.7100, with stop loss of 0.7020 and target price of 0.7160
