AUD/USD drops to fresh 11-week lows on poor Aus jobs data

The AUD/USD pair came under fresh selling pressure and dropped further to test 0.72 handle on the Australian jobs report, before recovering some ground amid mixed sentiment prevalent in the Asian session so far.

AUD/USD trades below 200-DMA at 0.7261

Currently, the AUD/USD pair trades -0.17% lower at 0.7217, retreating quickly from a dip to 0.7210, fresh eleven-week lows. The Aussie extended its previous decline and challenged 0.72 handle in a knee-jerk downward spike after the bulls were left unimpressed by below estimates Australian employment report.

The unemployment rate held steady at 5.7% in March,
while 10,800 jobs were added to the economy last month, below expectations of a 12,000 net increase. The labor force participation rate unexpectedly fell from 64.9% in March to 64.8% last month, the lowest in almost a year.

Markets digest the latest employment numbers against the back drop of tumbling oil prices and mixed trading seen on the Asian indices. While bears remain in control as a hawkish FOMC minutes document will continue to underpin the buck at the expense of the AUD.

Next in focus for the major remains the weekly jobless claims and Philly Fed manufacturing gauge, apart from a couple of Fed speaks, due later in the NA session.

AUD/USD Levels to watch

The pair finds the immediate resistance at 0.7262 (200-DMA) above which gains could be extended to the next hurdle located at 0.7300 (round number). On the flip side, the immediate support located at 0.7200 (key support). Selling pressure is likely to intensify below the last, dragging the Aussie 0.7162/50 (Mar 2 Low/ Daily S2).