AUDUSD retraces the NY session run higher

The AUDUSD trading low for a world higher stalled near key resistance.

The AUDUSD moved higher earlier today on the back of a strong jobs report for December 2021. The unemployment rate fell to its lowest since 2008 and near a 50-year low. The total employment change was stronger than expected as well. Below are the details of that report :

  • Employment Change: +64.8K expected 30.0K, prior 366.1K

  • Unemployment Rate: 4.2% expected 4.5%, prior 4.6%

  • Full-Time Employment Change: +41.5K prior was 128.3K

  • Part-Time Employment Change: K prior was 237.8K

  • Participation Rate: 66.1% expected 66.2%, prior was 66.1%

Looking at the price action, the price initially spiked higher and away from its 100/200 hour moving averages near 0.7217 after the jobs report. However, there was a corrective move back to the downside with the pair falling back down to retest its 200 hour moving average (green line).

Buyers leaned against the key technical level (risk was defined and limited) and gave the go-ahead to push back to the upside. The price moved to session highs near a swing area between 0.7272 and 0.72763. Also near the level as the 100 day moving average at 0.72784.

The high price reached 0.72758, just ahead of the high of the swing area and the 100 day moving average. Sellers leaned, buyers turned sellers, and pushed the price back to the downside.

The last four hours has seen the price rotate back lower and toward the low of the North American session at 0.7234.

The next major downside target would be the 200 hour moving average at 0.7224. Recall that is where the price based and moved higher after the better than expected jobs report in Australia. The 50% of the range for 2022 is also near that level at 0.72215.

Not helping the market today -especially more recently - is the reversal in the US stocks. The NASDAQ and S&P indices are now trading in the red as is the Russell 2000. The Dow industrial average holds on to a small 0.10% gain. Risk on has led to risk off.

PS. The NZDUSD has also retraced the run higher in what has been a down, up and back down day for that pair.

Looking at the hourly chart, the high price today would above then below the 200 hour moving average for the third consecutive day (green line at 0.6800). After the price fell back below the 100 hour moving average at 0.6786, selling has intensified. The prices now down testing a swing area at 0.6764 below that and the low from yesterday and Tuesday at 0.67549 and 0.67518 would be targeted.

NZDUSD on the hourly chart