GBPAUD Reversing Lower on Strong Aussie Jobs Data

AUD Higher MidweekThe Australian Dollar has been the standout performer so far today. The Aussie soared higher overnight in response to the latest set of employment indicators which showed that the unemployment rate remained unchanged at 3.5% last month, despite expectations for a 0.1% increase. Additionally, the latest employment change data was firmly higher than forecasts at 32.6k vs 15.4k expected.Further RBA Tightening Still SeenWhile the RBA left rates unchanged last time around, it did leave the door open to further tightening if needed. With the jobs market clearly still hot, traders will now be keen to see if this has spilled over into upwards inflationary pressure at next week’s Aussie CPI release. If any stickiness or fresh upside is seen in the data next week this will no doubt drive an increase in hawkish RBA expectations leading AUD higher still near-term.Where to Trade?Given the inflationary fall seen in the UK last month, GBP is on the backfoot currently, making GBPAUD a good vehicle to use for a long AUD trade. There is plenty of two-way risk into next week’s data however, with AUD likely to reverse if a fresh fall in CPI is confirmed.Technical ViewsGBPAUDThe reversal lower in GBPAUD has seen the market breaking down through support at the 1.8980 level. Price is now testing the bull channel lows which, if broken, opens the way for a deeper drop down to the next support at the 1.8600 level, in line with falling momentum studies readings.