AUD/USD – Pressured by Weak Jobs, Risk Aversion Continues to Weigh

The Australian Dollar managed to bounce off its overnight lows at 0.68358 to finish in late New York at 0.6855. The Battler was pressured by the weaker-than-expected fall in Australian Employment and worse than expected rise in the Unemployment rate to 7.1%. Another 227,700 jobs were axed in May following April’s losses of a 607,400 which were revised higher from 594,300. According to the Australian Business Insider, “had masses of unemployed Australians not simply given up looking for a job, the unemployment rates would actually be above 11%”.

AUDUSD Daily FX 1 H Chart – 19 June 2020

Growing fears of a rising second wave concerning the deadly coronavirus continued to drive risk aversion up. Cases in US states Florida and Texas spiked with Texas marking a record jump to total 100,000. Numbers were also up in developing countries led by Brazil, Mexico, Chile, Pakistan and India.

AUD/USD has immediate resistance at 0.6870 followed by 0.6900. Immediate support can be found at 0.6830 followed by 0.6800 and 0.6770. Expect consolidation today within a likely range of 0.6780-0.6880. The pressure remains lower but it’s a Friday and trading the range is the best strategy.

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