Australian Dollar hangs near August 7 low after weak jobs data, ahead of Trump-Xi summit

The Australian Dollar (AUD) hit a new low near 0.7025 following the release of Australian monthly jobs data, but it managed to hold above the 200-day Simple Moving Average (SMA) support. The Australian Bureau of Statistics reported that the number of employed people increased by 39K in August, surpassing expectations of 20K, while the previous month saw a decline of 15.8K.

However, full-time jobs fell, and the Unemployment Rate climbed to 4.6% from 4.5% in July, indicating a weaker economy. This weak jobs data dampened expectations of a rate hike by the Reserve Bank of Australia (RBA) and weakened the AUD. In contrast, the US Dollar (USD) remained strong, supported by the anticipation of further interest rate hikes by the Federal Reserve (Fed).

Traders are increasingly betting on an additional rate hike by the Fed in October, bolstered by an S&P Global report showing a surge in US business activity in September. The AUD/USD pair is now trading just above the 200-day SMA at 0.7022 and the 61.8% Fibonacci retracement at 0.7006, hinting at a potential buyer's interest around the 0.70 level.

The next resistance levels include the 50.0% retracement at 0.7050, followed by the 38.2% level at 0.7094, and finally the 23.6% retracement at 0.7149. The Unemployment Rate, released by the Australian Bureau of Statistics, is a key economic indicator that reflects the health of the Australian labor market and can influence the RBA's interest rate decisions.