The Australian Dollar (AUD) is demonstrating resilience, with the AUD/USD pair holding above the key 0.7000 psychological level following a robust domestic employment report that surpassed market expectations. This positive data reinforces the bullish technical outlook previously flagged by United Overseas Bank (UOB), which identified 0.6970 as a crucial near-term support level.
UOB’s technical analysis highlighted that as long as AUD/USD remains above 0.6970, the pair retains the potential for further upside, with resistance targets in the 0.7050–0.7100 range. The 0.6970 level has served as a consistent floor, with buying interest preventing deeper corrections. A decisive break below would shift momentum, but the post-data price action has kept the pair above this threshold.
On Wednesday, the Australian Bureau of Statistics reported that the economy added 38,000 jobs in October, significantly beating the forecast of 20,000. The unemployment rate fell to 3.8% from 3.9%, while the participation rate held at 66.8%. This labor market strength diminishes expectations of an imminent rate cut by the Reserve Bank of Australia (RBA), as the central bank maintains its cash rate at 4.35%. A tighter labor market supports wage growth and inflation, encouraging the RBA to hold rates steady, which is typically positive for the currency.
Following the data, AUD/USD climbed from 0.6980 to a high of 0.7040 before consolidating near 0.7020. The bullish technical bias remains intact, though traders watch resistance at 0.7050 and broader risk sentiment, including U.S. Federal Reserve policy expectations. The UOB analysis emphasizes that 0.6970 is the line in the sand, and the strong jobs data adds fundamental backing to the technical picture.
For traders, the 0.6970 level now serves as a clear reference point: a bounce could be a buying opportunity, while a breakdown might signal a reversal linked to changing global dynamics or a sudden dollar rally. The AUD’s trajectory will also depend on upcoming Australian inflation data and global commodity prices.
