The Australian dollar faced renewed pressure following weaker-than-expected labor data

The Australian dollar dropped nearly 1% against the U.S. dollar during Thursday’s Asian and early European sessions, weighed down by weaker-than-expected labor data.

Australia’s unemployment rate unexpectedly jumped in June to its highest level in three and a half years, while job gains were minimal—adding to the overall negative sentiment.

The disappointing figures have heightened expectations for potential rate cuts. However, policymakers are likely to proceed cautiously, waiting for further clarity from upcoming inflation data, with the Q3 report due at the end of July.

Thursday’s decline was notably sharp, putting the pair on track for one of its biggest daily losses since the April 4 sell-off. The drop broke below the lower boundary of the recent range at 0.6556, which also marks the 50% retracement of the 0.6372–0.6594 upward move, before finding support at the top of the daily Ichimoku cloud at 0.6463.

The expansive daily cloud (spanning 0.6463 to 0.6230) offers strong support and poses a significant barrier to further bearish momentum, likely limiting the current decline.

In this scenario, immediate downside pressure would ease, keeping the pair within an extended consolidation range.

However, a clear break and close within the cloud would undermine the near-term structure and open the door for a deeper correction.

Daily indicators remain mixed—while the Ichimoku cloud continues to provide support, momentum has turned negative, and moving averages are offering no clear directional signal for now.

Res: 0.6483; 0.6530; 0.6575; 0.6592
Sup: 0.6463; 0.6434; 0.6407; 0.6372