18.10.201807:46 Forex Analysis & Reviews: Global macro overview for 18/10/2018

Important data were published overnight from Australia in form of Unemployment Rate and Employment Change. The most important of the readings - change of employment in September - failed. Employment growth was expected by 15.2k people, and the final result was the only 5.6k. This result, however, does not matter when the unemployment rate decreases. The previous reading was 5.3%, analysts did not expect improvement. Nevertheless, the final result was much better - the unemployment rate decreased to the level of 5.0%.

The unemployment rate generally moves slowly, so changes of only a few tenths of a percent are still considered significant. Also, note that the unemployment rate does not account for discouraged workers. Therefore, in an economically depressed environment, such as that which occurred in Cold War era East Germany, the Unemployment Rate may not accurately reflect the extent of problems

Let's now take a look at the AUD/USD technical picture at the H4 time frame. The Aussie reaction was strong and the move up started an hour before the announcement of the data, the rebound occurred around 0.7105. After the data release, AUD/USD moved by more than 20 pips, then there was an hour-long downward reversal, and finally, there was a rise again. Currently, the price of the Australian dollar is around 0.7125, The nearest support is seen at the level of 0.7111 and the nearest resistance is seen at the level of 0.7136.