Australia Employment Change (OCT) – Reaction

Australia Employment Data headline figure was much better than expected, with a net +10.7K jobs created vs -5K expected. Looking deeper, Full Time Employment increased by +18.7K, though lesser than previous month of 32,1K, it’s stilla respectable figure. Part Time Employment continue to drop, with Participation Rate and Unemployment Rate remaining flat, suggesting that more Part Time workers are converting to Full Time employees, which only means good news for Australia’s Economy.

5 Min Chart


Aussie responded predictably higher,with price breaking 1.04 significant support/resistance along the way. Bullish momentum stopped around 9.30am SGT (8.30pm EST), coinciding with risk aversion in Asian Markets as Equities opened sharply lower. Support around 1.0415 can be seen and could prevent further slide lower, but perhaps the recovery has more to do with Equities recovering from the large gap down rather than AUD/USD traders hoping to trade higher.

However, with Hang Seng Index unable to push beyond 21,850, risk appetite in Asia is expected to remain low, hampering AUD/USD’s bullish push above current levels. (HSI Chart Here)

Hourly Chart


Hourly Chart shows a shooting star just at H3 level, with current price trading lower than consolidation range found on 6th Nov. Interim support could be seen also around 1.0415, but that is essentially the same information that the 5 min Chart has given us. Despite this, bulls will be glad that price is trading above Yesterday’s Low, with a break finding further support on L3 and also L4 to reach the consolidation range found between 4th and 5th Nov ultimately.


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