The Australian dollar suffered a deeper decline when it resumed trading in the Asian session this morning (Thursday) with a gloomy reaction to the publication of the Australian employment data report.
The Australian economy lost 14,600 jobs in December, missing expectations for an increase of 26,500 jobs.
Meanwhile, the unemployment rate remained at 3.5% when the forecast was to decrease to 3.4%.
The gloomy reading of the report has pushed the Aussie dollar back lower heading into the week-end trade.
In addition, the risk of a global recession that is increasing also affects the pressure on the currency, on the other hand it is seen to give an advantage to safe-haven currencies including the US dollar.
Thus, it can be observed that the price movement on the chart of the currency pair AUD/USD started to change direction showing a downward pattern again.
In yesterday's Wednesday trading, the price initially managed to make an increase to around 0.70600, recording the latest 5-month high, but suffered a significant fall during the New York session.
A drop below the 0.70000 level crossing the Moving Average 50 (MA50) support level on the 1-hour time frame on the AUD/USD chart signals a trend change.
After closing the New York session trading around 0.69400, the price continued that downward pattern in the Asian session this morning before starting to slow down in the 0.69000 zone.
A lower decline is expected to lead to some concentration levels such as 0.68300 and 0.67600 witnessing a more clear bearish trend movement.
Next, the price is seen to return to the 0.67000 support zone which was also the price stop at the beginning of January.
However, if the price is successfully pushed back from the 0.69000 zone, the price needs to cross the 0.70000 level again to show that the bullish movement will continue.
Overcoming the high reached yesterday will push the price to record the latest high level with the target being at the 0.71000 zone.
