Global macro overview for 19/05/2016:
The employment data from Australia has been released overnight, and, according to the Australian Bureau of Statistics, the unemployment rate remained unchanged at the level of 5.7% (lower than the 5.8% expected figure). Moreover, a net 10,800 jobs were added to the economy last month, missing the expectations of a 12,000 net increase and compared with a revised 25,700 in March. Other negative news is that the participation rate has slightly decreased to 64.8% from 64.9% a month ago. In conclusion, employment continues to increase, albeit at a somehow slower-than-anticipated pace. This is not the biggest problem for the RBA, the biggest problem is very low inflation that keeps around 1.5%. This is why the next interest rate cut might be just around the corner.
Let's now take a look at the AUD/USD technical picture on the daily time frame. The market is trading at 61% Fibo at the level of 0.7212, below the support at 0.7259. This is the line in sand for the bulls to take back the control over the market, otherwise the bears would push the price lower towards the level of 0.7110.
