The Australian dollar moved higher during the Asian session on Thursday as the labor market in the country unexpectedly improved. As the EURUSD pair was trading flattish heading into the ECB decision, the EURAUD cross was down 0.25%, hovering around 1.6170 and correcting from three year highs reached earlier in the week.
The Australian employment changed soared to 44,000 in August, up from -3,900 in July. The unemployment rate stayed at 5.3%, whilst the participation rate improved a bit from 65.5% to 65.7% in August.
Moreover, part-time employment jobs rose notably from -23,200 to 10,200 and full-time jobs also moved higher from 19,300 to 33,700. The Australian dollar strengthened around 30 pips after these numbers.
Later in the day, the European central bank is expected to leave monetary policy unchanged, however, economists are expecting a slight dovish tone as the central bank will most likely downgrade its economic outlook. This could leave the euro vulnerable.
The EURAUD cross is now falling toward the previous highs at 1.6150, which will be the first major support, with the second one at the 1.61 level. On the upside, bulls need to get back above the 1.62 mark to have a chance of attacking the current cycle highs above 1.63. The MACD could send a bearish signal soon.