Australian Employment Preview: Sharp increase in jobs to support the aussie

Australia will publish on Thursday at 00:30 GMT its February employment figures. The country is moving into the right direction but at a slow pace while the AUD/USD pair is developing a head and shoulders figure though it is unlikely to test the neckline at 0.7561, FXStreet’s Chief Analyst Valeria Bednarik briefs.

Key quotes

“Australia is expected to have added 30K new jobs in the month, while the unemployment rate is foreseen shrinking to 6.3%. The participation rate is expected to have increased to 66.2%.”

“A sharp increase in jobs’ creation could provide temporal support to the local currency but will be short of suggesting a substantial recovery in the sector. A disappointing reading, on the other hand, could see the aussie edging firmly lower.”

“The AUD/USD pair is developing a H&S formation in the daily chart, with the neckline at 0.7561, the low set in February. It seems unlikely that the aussie could hit such a low with the employment report, but as closer it gets the higher the risk of a slump towards 0.7200 in the mid-term.”