AUD/USD grinds higher around 0.7200 on mixed Australia employment data

• AUD/USD prints three-day uptrend while poking weekly high on mixed Aussie jobs data.
• Australia Employment Change rose past forecasts, Unemployment Rate met expectations in January.
• Risk appetite remains fragile over Russia, Fed concerns, yields, equities drop of late.
• Second-tier US data will decorate calendar but qualitative catalysts are the key to watch for clear direction.

AUD/USD pauses three-day uptrend around 0.7200 following the mixed Australia jobs report during the early Asian session on Thursday.

The Aussie pair initially cheered softer US dollar and optimism surrounding the UK-Australia trade ties to print gains. However, the market’s anxiety joined mixed data to probe the bulls of late.

That said, Australia’s Employment Change rose past 0.0K forecast to 12.9K, below 64.8K prior, whereas the Unemployment Rate remained unchanged to 4.2%, meeting market consensus, in January. Further, the Participation Rate rose past 66.0% expected and 66.1% previous readouts to 66.2% during the stated month.

It’s worth noting that UK PM Boris Johnson praised strong ties between Britain and Australia, also lauded concerns of a better future, following a video call with Australian Prime Minister Scott Morrison.

Elsewhere, indecision over Russia-Ukraine tensions and Fed’s next move weigh on the risk barometers like US Treasury yields and equities. That said, the US 10-year Treasury yields dropped 2.3 basis points (bps) to 2.024% whereas S&P 500 Futures decline 0.25% at the latest.

Having witnessed no reaction to the positive surprise of Aussie Employment Change, AUD/USD traders will pay attention to the risk catalysts for fresh impulse, which in turn challenge the pair’s latest run-up. Also important will be the second-tier US economics, mainly the housing market numbers, jobless claims and Philadelphia Fed Manufacturing Survey.

Technical analysis

Unless declining back below the 50-DMA level near 0.7170, AUD/USD remains on the way to the 0.7235-45 key resistance area comprising the 100-DMA and a descending trend line from early November. The bullish bias also gains support from firmer RSI and MACD signals.