• The AUD/USD pair is up 0.09%, supported by powerful Australian employment data and weaker US employment.
• The number of jobs in Australia increased by 50.2 thousand, beating forecasts; the unemployment rate rose slightly to 4.1%.
• The number of applications for unemployment benefits in the US rose to 243,000, indicating a feeble situation in the labor market and supporting risk sentiment.

The Australian dollar continued to rally on Thursday after data from the United States (US) showed the labor market continuing to cold, following last week’s Initial Jobless Claims (IJC) report. The AUD/USD pair is trading at 0.6734, up 0.09%.

AUD/USD rises on powerful Australian employment data

US equity futures are pointing to a positive start, portraying a risk-on environment. This is supported by the high beta status of the Australian dollar, which was strengthened during the Asian session following the release of a powerful employment report.

The Australian Bureau of Statistics (ABS) revealed that the change in employment rose by 50.2 thousand, exceeding estimates of 20 thousand and the May reading of 39.5 thousand. However, the unemployment rate rose from 4% to 4.1%.

The data will test the patience of the Reserve Bank of Australia (RBA), as TD analysts mentioned in their note: “With inflation rates remaining higher since the start of the year and the labour market performing better than expected, the RBA’s patience with keeping the policy unchanged is likely to be tested.”

In addition, a recently released IJC report showed “some slack” in the U.S. labor market. The number of Americans filing for unemployment benefits in the week ending July 13 rose above estimates of 230,000, reaching 243,000, exceeding the previous week’s reading of 223,000.

AUD/USD Price Analysis: Technical Outlook

From a technical perspective, the AUD/USD pair remains in an uptrend, but a decline from the yearly highs of 0.6798 towards the current exchange rate paves the way for a test of the May 4 highs, which turned support at 0.6714.

Further strengthening of the US dollar could push the pair below 0.6700, paving the way for a challenge to the 50-day moving average (DMA) at 0.6667, ahead of the 100-day moving average at 0.6603. On the other hand, if buyers sustain the AUD/USD exchange rate above 0.6700, it could pave the way for a test of the yearly high at 0.6793.