AUD/USD Rises Above SMA Amid a Fall in Oil Prices
A report highlighting three different points has to come to light. It deals with Australia adding more jobs and experiencing a rise in the participation rate as well. Another point that has been highlighted is that AUD/USD has moved above the 50-Day Simple Moving Average. The trend may, however, start declining in the near future.
The prices of oil have fallen as the chance of Iranian oil coming back to the market has emerged.
Australia Adds Jobs As AUD/USD Rises
Australian fx brokers had an eye on AUD/USD as the pair rose above the 50-day Simple Moving Average (SMA) and the 61.8% Fibonacci retracement overnight.
Australia also added more jobs in the previous month. The statistics released showed a figure of 12.9k. Reportedly, it beat the +0k Bloomberg consensus report.
A rise in employment led to an obvious decrease in the unemployment rate, which now stands at 4.2%. It is completely in line with the predictions of experts who believe that the current joblessness rate is at its decade-low.
The decrease in unemployment can be due to a marginal rise in the participation rate. It was earlier at 66.1%. The increased statistics are at 66.2%.
Omicron, the latest variant of the Covid-19 Virus, was predicted to damage the overall labor market. However, some analysts believe that the damage was merely by a small margin. What was, in fact, affected the most was working hours.
The economy, in general, is being observed from the point of view of inflation. Philip Lowe, the Governor of the Reserve Bank of Australia, has retained his dovish stance over the policies even though there is a growth in the market expectation for a hike in the rate of the Reserve Bank of Australia.
The current inflation rate is 2.6%, pretty much in the range of what Philip Lowe said the range of the Reserve Bank of Australia was. He quoted earlier that the board of the bank was prepared to endure the inflation rate in the range of 2-3%.
The outlook of the Asia Pacific market is currently mixed with emotions for traders.
There is a growing chance that the Iranian oil may return to the market as negotiations are underway in Vienna. This has led to a fall in the price of oil.
National Iranian Oil Co. is reportedly in preliminary talks with two South Korean refiners. The prices have gone bearish for a while.
Ali Bagheri Kani, Iran’s top negotiator, recently tweeted that the deal was closer than ever, adding to the bearish move in oil prices.
Bulls trading in AUS/USD may experience a slight roadblock while targeting the mark 100-Day Simple Moving Average. The value has risen above the 50-Day Simple Moving Average and 61.8% Fibonacci retracement overnight, but the descending trend is estimated to begin shortly.
