The bid tone around the Aussie dollar strengthened, pushing the AUD/USD pair to a fresh session high of 0.7626 after the Aussie data showed the economy added 42K jobs in May, which is well above the consensus estimate of 10K job additions.
Full time jobs rise 52.1K
The economy added 52.1K in full time jobs, while the jobless rate dropped to 5.5%. Meanwhile, the participation rate improved to 64.9%. The Aussie 10-year bond yield has recovered from the session low of 2.33% to trade around 2.38%.
The uptick in the bond yield adds credence to the jump in the Aussie dollar and suggests the currency pair could extend the rally well beyond the previous day’s high of 0.7636.
AUD/USD Technical Levels
A break above 0.7611 (127.2% Fib extension of the May 9 low – May 23 high – June 2 high) would expose 0.7679 (Mar 30 high) and 0.77 (zero levels). On the other hand, a breakdown of support at 0.7556 (5-DMA + 50-DMA) would open doors for a re-test of 200-DMA of 0.7530 (also 10-DMA) and 0.75 (zero levels). The daily MACD remains in favor of the bulls, while the RSI also suggests potential for further gains.