• AUD / USD reverses form of weekly pullback after Australian data, maintains Fed-linked rise.
  • Australia The unemployment rate fell, employment trends picked up in November.
  • Lowe of the RBA has been prepared to keep rates low, cited the need for 4.0% wage growth, full employment for the rate hike.
  • Second-tier US data, including preliminary PMIs for December, may offer additional guidance, but the ECB is key.

AUD / USD raises offers to 0.7172, extending the post-Fed increase as the Australia jobs report for November showed signs of welcome early Thursday. Market readiness for the European Central Bank (ECB) monetary policy meeting and mixed concerns over the US stimulus and Omicron could add to the pair’s advances.

Australia’s unemployment rate fell to 4.6%, below 5.0% expected and 5.2% previously, while the job change rose to 366.1K from +200K expected and -46, 3K previous reads. Moreover, the turnout also exceeded 65.5% of the market consensus and 64.7% previously with figures of 66.1%.

Read: Australian unemployment rate supports AUD / USD

Earlier today, RBA Governor Philip Lowe rejected the 2022 rate hike while saying: “Prepared to keep rates low if the national economy demands it. “I would like to see wages increase by 4% and full employment,” added the boss of the RBA.

Additionally, Australia’s Commonwealth Bank (CBA) released preliminary PMI data for December. Activity figures showed the manufacturing gauge topped the 57.1 forecast at 57.4, but fell below 59.2 previous readings. In addition, the services PMI also fell from 55.7 to 55.1, leading the composite PMI to 54.9 from 55.7, down from 53.7 at market consensus.

As firmer Australian jobs report that RBA rate hike expectations remain on the table, as Lowe said, “If tightening other central banks would increase the likelihood of us following,” the bulls AUD / USD retain control at press time.

It should be noted that US stimulus hopes and moderate S&P 500 futures bids are also helping AUD / USD prices. On a related note are the likely preparations by the bulls of the US dollar to resume control after the ECB meeting, with bearish expectations.

Next, preliminary monthly PMI readings and Omicron updates will also be monitored in addition to the ECB for clearer direction.

Read: European Central Bank Snapshot: No more recalibration or a real tightening?

Technical analysis

AUD / USD depicts a bullish head and shoulders chart pattern reversed on the four hour game, with 0.7170 acting as the neckline, a breakout of which will steer the quote towards the 200-SMA level crossing of 0.7234 for Aim for the mid- November high was near 0.7370. Meanwhile, monthly horizontal support near 0.7090 may test bears before heading towards annual low near 0.6990.