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AUD jumps higher on jobs data

The AUD continues to be quite illusive for a lot of traders and remains resilient despite growing calls for rate cuts.

CFDs are a leveraged product and can result in losses that exceed deposits. Trading CFDs may not be suitable for everyone, so please ensure you fully understand the risks and take care to manage your exposure.

AUD/USD seems to be in neutral territory at the moment, playing a range between $0.8000 and $0.8300. This is quite impressive considering the turmoil in global commodities and all the surrounding growth concerns.

ANZ mounted pressure on the RBA today after coming out with a 50-basis-point rate cut call over the first half. This is quite aggressive and, considering the market is only pricing in 40 basis points over the next 12-months, investors are likely to take this with a hint of salt.

We have seen a positive reaction to a surprise jump in December jobs numbers today. The Australian economy registered 37,400 jobs added with the unemployment rate dropping to 6.1%.

Both these readings were much better than expected and the participation rate even ticked a bit higher. Another positive is that the jobs added were all full-time employment.

This has seen AUD/USD pop up to the $0.8200 region and I still feel levels closer to $0.8300 would be the ideal sell zone. At these levels, the pair seems like it has enough momentum to squeeze a bit higher.

As a result, I feel traders should exercise some patience and look to sell at higher levels when the medium-term downtrend is tested.

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CFDs are a leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your initial deposit, so please ensure that you fully understand the risks involved.