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AUD/USD drops to lows around 0.9240

FXstreet.com (Edinburgh) -The Aussie dollar continues to suffer the negative effects of the poor employment data in Australia, pushing the AUD/USD to session lows around the 0.9240/45 region.

AUD/USD hurt by job data

The pair is now reverting the recent steep correction higher, climbing from sub-0.8900 levels to yesterday’s multi-week highs around 0.9360. It is worth noting that Australian jobless rate ticked higher to 5.8% during August vs. July’s 5.7% and the Employment Change dropped by 10.8K, hurting investors’ sentiment. Tim Riddell, Head of Global Markets Research at ANZ, commented, “Sharp rebounds off 0.8890 may induce calls for larger squeezes to 0.9500-10 (38.2% of fall since April) or even a “head and shoulders” target of 0.9600-20. Momentum indicators (daily and weekly) are supportive”.

AUD/USD critical levels

The pair is now retreating 0.88% at 0.9246 with the next support at 0.9216 (low Sep.10). On the upside, a breakout of 0.9340 (high Jun.27) would expose 0.9345 (high Jun.26) ahead of the psychological level at 0.9400.