Global macro overview for 18/05/2017:
Good data on the Australian job market hit the financial newswires overnight. According to the Australian Bureau of Statistics, the Unemployment Rate decreased more than expected, from 5.9% to 5.7% and the Employment Change increased more than expected 4.5K, because the figure revealed was at the level of 37.4k (60.1k a month ago). Part-time jobs were responsible for the growth trend in April as the job creation in this category surged by 49k, following a drop of 13.6k the month before. In conclusion, the Australian employers increased hiring for a seventh consecutive month, reflecting a broad recovery in the nation's labor market. Despite this good data, the main concern remains a weak full-time employment as it declined by 11.6k last month. The growing prevalence of part-time work might raise questions regarding the quality of jobs creation in Australia.
Let's now take a look at the AUD/USD technical picture on the H4 time frame. The bulls have managed to break out above the technical resistance at the level of 0.7438 and now the price is testing this level from above. Nevertheless, the spike up wasn't strong enough to test the upper channel boundary yet as the market conditions are overbought already. The next resistance is seen at the level of 0.7509.
