The dollar remained broadly higher against a basket of other major currencies on Friday, after data showed that the U.S. economy added far more jobs than expected last month, sparking optimism over the strength of the job market.
In a report, the U.S. Department of Labor said the economy added 280,000 jobs in May, exceeding expectations for an increase of 225,000. However, April’s figure was revised to a 221,000 rise from a previously estimated gain of 223,000.
The report also showed that the U.S. unemployment rate ticked up to 5.5% last month from 5.4% in April. Analysts had expected the rate to remain unchanged.
U.S. average hourly earnings rose 0.3% in May, beating expectations for a 0.2% gain, after an uptick of 0.1% the previous month.
The pair bottomed out after hitting 0.7597 last week. Such recovery was limited below 0.7817 minor resistance and thus maintain bearish outlook. That is, consolidation pattern from 0.7625 has completed at 0.8161 already and larger down trend is possibly resuming with 21 and 55 EMA still crossing downward indicating bearish momentum is still in play. Below 0.7597 will target 0.7532 first. Break will target 61.8% projection of 0.8910 to 0.7625 from 0.8161 at 0.7367 next. However, above 0.7839 will suggest that consolidation pattern from 0.7625 is extending with another rise towards 0.8161 resistance.
Later this week investors would be taking a close look at the AUD employment statistics, USD Retail/Core Retail Sales and Consumer Sentiment.