Aussie bond yields spike on upbeat jobs data, AUD/USD eyes 0.80 handle

A big jump in the Aussie full time employment numbers pushed the 10-year bond yield higher by 5 basis points to 2.794%. The overbought AUD/USD clocked a high of 0.7988 and looks set to test the major psychological hurdle of 0.80 for the first time since May 2015. 

Employment increased 26,400

The Australian June employment report came solid, with the employment change at 14k vs 15k exp. The jobless rate ticked higher to 5.6% as expected. The full time employment came-in at 62K in June vs 52.1K in May. 

The strong numbers also boosted the 2-year yield, which now trades 4 basis points higher on the day. However, the near 90 degree rally in the AUD/USD and the resulting overbought RSI is slowing the ascent towards 0.80 handle. 

AUD/USD Technical Levels

On the higher side, breach of the major psychological level of 0.80 would expose the downward sloping weekly 200-MA of 0.8015. The next major hurdle is seen at 0.8164 (May 2015 high). On the downside, breach of the session low of 0.7946 would expose 0.7894 (5-DMA) and 0.7860 (1-hour 100-MA).