The Australian dollar showed an interesting reaction in the Asian session just now with market focus directed to the release of the Australian jobs data report.
Looking at the report, the economy lost 4,300 jobs on record for April compared to forecasts for an increase of 24,800.
Adding to the concern is the unemployment rate which jumped to 3.7%, compared to remaining at 3.5%.
The decline in the latest jobs report in Australia is seen to affect the tightening of monetary policy by the Reserve Bank of Australia (RBA).
The central bank surprised the market by raising interest rates at its most recent meeting in early May compared to forecasts for rates to be kept on hold.
Examining the price chart of the AUD/USD currency pair, the price has shown a decline again after the increase at the beginning of the week reaching the 0.67000 zone.
The price movement was slightly flat yesterday with the daily low around 0.66300 and the high at 0.66700.
The price moving below the Moving Average 50 (MA50) barrier level on the 1-hour time frame on the AUD/USD chart indicates that the signal for bearish movement is still maintained.
Testing the barrier level in the Asian session this morning, prices were pushed lower following the reaction to the published Australian jobs report.
A lower decline if continued in the following sessions is seen to go to the 0.65700 to 0.66400 zone.
Hitting that zone will mark the latest 3-week price low.
However, if a surge occurs again, the price that crosses the MA50 barrier will head back to the 0.67000 zone after giving an early signal for a change in the bullish trend.
Continued gains will head towards 0.67500 before retracing last week's highs near 0.68200.
