• AUD/USD edged lower on Thursday as a weaker-than-expected Australian jobs report increased the likelihood of a rate cut by RBA in May.
• Australia’s employment unexpectedly dropped in February, signaling a possible cooling of the red-hot labor market after a strong run of gains. However, the unemployment rate remained low, suggesting underlying resilience.
• Figures from the Australian Bureau of Statistics on Thursday revealed a 52,800 drop in net employment for February, following a downwardly revised 30,500 gain in January. The jobless rate, however, stayed at 4.1%, matching market expectations.
•Swaps indicate a 10% probability of a rate cut on April 1, while the odds of a May rate cut have risen to 78% from 70%, as the previously strong labor market was seen as a barrier to further policy easing.
• At GMT 05:55, The Australian dollar was last trading down 0.32% to $0.6336
• Immediate resistance is located at 0.6367 (38.2%fib), any close above will push the pair towards 0.6391(March 18th high).
• Support is seen at 0.6332 (50%fib) and break below could take the pair towards 0.6309(Lower BB).
Recommendation: Good to sell around 0.6340, with stop loss of 0.6430 and target price of 0.6270
