Forex: EUR/AUD adds to gains ahead of Aussie Jobs Data \

FXstreet.com (Barcelona) - The EUR/AUD finished the session up 94 pips at 1.2840. At one point the pair traded as high as 1.2910, but was unable to maintain a bid at higher levels and leaked lower later in the day. Aussie unemployment data will be released later in the session at 1:30GMT, which could have a major influence on the pair given the recent RBA rate cut earlier in the week.

According to analysts at NAB Global Markets, “Big day for Australia today, with the monthly Labor Force due at 11.30am AEST. Our forecast is for another fall in employment, down 10K for April (market median forecast +11K), after a fall of 36,100 last month. We expect the unemployment rate to remain unchanged at 5.6%, as does the market, with NAB’s Participation Rate at 65.0% (market forecast at 65.1%, the outcome for March). “

They went on to comment, “While the monthly jobs outcome has all of the characteristics of a random walk, in support of our negative forecast, NAB employment has been trending down; ANZ Job Ads fell 1.55% in March; and DEWR Internet Vacancies dipped by 0.3% in March, after a 1.6% Feb fall.”

The short term technical set up remains constructive, with price above both the 9 and 20 dma’s, while the RSI (14) is also bullish sitting just above 60. Initial support sits at 1.2810 (the 50dma on 1 hour chart), followed by 1.2750 (the 9 dma). First resistance comes in at 1.2880 (resistance on 1 hour chat), followed by 1.2910 (previous day high)