Current developments in financial markets that last night's New York session saw signs of a re-strengthening of the US dollar to resume added pressure to trading in other major currencies.
Likewise, the Australian dollar has also shrunk compared to the US dollar in a market that is again considered risky.
However, stealing the focus in the Asian session this morning (Thursday), the Aussie dollar again showed an increase in its value following the market reaction to the publication of the Australian jobs report shortly earlier.
Examining the components in the report signaled a recovery in the labor market in Australia with the unemployment rate dropping to an almost 50-year low.
However, job gains for April posted a weak reading of just 4,000 against expectations for an increase to 30,000.
The price chart of the AUD/USD currency pair has shown a decline in the New York session overnight after the price increase at the beginning of the week was flat at the level of the high of 0.70400.
The price which fell below the 0.7000 level also moved back below the 50 Moving Average (MA50) resistance level which gave a signal for a bearish trend change following the initial strengthening of the US dollar which pushed prices down.
However, the price spike took effect in the Asian session this morning after the UK jobs data report was published and the price jumped from the 0.69500 level to the original 0.7000 zone.
Failing to break through the MA50 barrier, the price then reveals its initial decline in the early European session.
Lower losses would be expected should the Aussie dollar fail to sustain its surge to overcome dominance by the US dollar.
The decline is expected to head to around 0.69000 before extending further declines to the 0.68300 support zone.
On the other hand, if the price manages to make a spike, the resistance in the 0.70400 zone will be tested again for the price to overcome.
Continued gains are seen as heading towards the support zone at 0.7100 for the price to post its latest 2-week high.
