AUD/USD – Aussie Under Pressure As US Unemployment Claims Jump

AUD/USD continues to post losses on Thursday, as the pair trades in the mid-0.92 range late in the European session. The Aussie has taken a tumble, losing over 100 points since Tuesday. In Thursday releases, US Unemployment Claims came in well above the estimate, while Core Durable Goods Orders soared to an eighteen-month high.

US releases painted a mixed picture on Thursday. Unemployment Claims jumped to 329 thousand, its highest level since mid-February. This was much higher than the estimate of 309 thousand. There was much better news from the manufacturing front, as Core Durable Goods Orders jumped 2.0% in March, crushing the estimate of 0.6%. Durable Goods Orders kept up the pace with a sharp gain of 2.6%, beating the estimate of 2.1%.

Australia’s highlight event of the week was CPI, one of the most important consumer indicators. The indicator is released each quarter, magnifying the impact of each release. The index proved once again to be a market-mover, as the Australian dollar slipped badly, as CPI posted a gain of 0.6% in Q1, falling short of the estimate of 0.8%. CPI has now dropped for a second straight quarter, and is sharply down from its gain of 1.2% in Q3 of 2013.

In the US, New Home Sales slumped badly, as the key indicator plunged to 384 thousand in March, down from 440 thousand in the previous release. The weak reading was nowhere near the estimate of 455 thousand, and marked an eight-month low for the key housing indicator. The housing sector is showing signs of weakness, as both New Home Sales and Existing Home Sales have been on a sustained downward trend.

 

AUD/USD for Thursday, April 24, 2014

Forex Rate Graph 21/1/13

AUD/USD April 24 at 13:15 GMT

AUD/USD 0.9257 H: 0.9301 L: 0.9254

 

AUD/USD Technical

S3 S2 S1 R1 R2 R3
0.9000 0.9119 0.9229 0.9361 0.9446 0.9542

 

  • AUD/USD continues to lose ground on Thursday. The pair broke below the 0.93 line late in the Asian session and continues to move lower.
  • 0.9229 remains under pressure and could be tested during the day. There is stronger support at 0.9119, which is protecting the key 0.9000 level.
  • On the upside, 0.9361 has some breathing room and is a strong resistance line.
  • Current range: 0.9229 to 0.9361.

Further levels in both directions:

  • Below: 0.9229, 0.9119, 0.9000 and 0.8893
  • Above: 0.9361, 0.9446, 0.9542, 0.9617 and 0.9703

 

OANDA’s Open Positions Ratio

AUD/USD ratio is unchanged on Thursday. This is consistent with the movement of the pair, which has dropped sharply. The ratio has a majority of long positions, indicative of trader bias towards the Australian dollar reversing its current downward movement.

AUD/USD continues to lose ground in Thursday trade and the pair is under pressure early in the North American session.

 

AUD/USD Fundamentals

  • 12:30 US Core Durable Goods Orders. Estimate 0.6%. Actual 2.0%
  • 12:30 US Durable Goods Orders. Estimate 2.1%. Actual 2.6%.
  • 12:30 US Unemployment Claims. Estimate 309K. Actual 329K.
  • 14:30 US Natural Gas Storage. Estimate 40B.

*Key releases are highlighted in bold

*All release times are GMT

 

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.

Kenny Fisher

Kenny Fisher

Currency Analyst at Market Pulse
Kenny Fisher joined OANDA in 2012 as a Currency Analyst. Kenny writes a daily column about current economic and political developments affecting the major currency pairs, with a focus on fundamental analysis. Kenny began his career in forex at Bendix Foreign Exchange in Toronto, where he worked as a Corporate Account Manager for over seven years.