Australian Employment Data Crushes Expectations: #EURAUD Bearish Surge Analysis
Australia's December 2025 jobs report, released early on January 22, 2026, obliterated forecasts and ignited a fierce AUD rally that crushed #EURAUD to 1.7179 lows. Employment soared +65.2K against expectations of +28.3K (prior -28.7K), unemployment locked steady at 4.1% versus predicted 4.2%, and trade balance vaulted to 6.98B AUD from 4.96B—a textbook hawkish jolt for the Aussie dollar.
Data Breakdown
Australian Bureau of Statistics figures confirmed a seven-month low unemployment rate of 4.1%, powered by 54.8K-55K full-time job additions and participation surging to 66.7%. This dramatic turnaround from prior contraction slashes RBA rate-cut odds while fueling speculation of policy tightening amid persistent inflation pressures. Commodity tailwinds like rising iron ore prices amplify the AUD's structural strength.
#EURAUD Technical Reaction
Post-release, #EURAUD shed ~0.63% intraday, slicing through 1.7287 support to hit 1.7160 lows before stabilizing near 1.718. The move unfolded as a classic bearish Marubozu on daily timeframes, with H4 RSI dipping to 38 signaling oversold conditions but no immediate reversal. Current action tests 1.7150 minor support within a down-channel from January's 1.7596 peak; 50-day MA at ~1.74 remains far overhead. Upside resistance clusters at 1.7250-1.7350, where sellers previously dominated.
Fundamental Drivers
The payroll beat widens yield differentials, pushing AUD rates to 4.36% against EUR's sub-3% levels amid ECB's ongoing dovish pivot. RBA's data-responsive stance now tilts hawkish, contrasting Eurozone PMI weakness and subdued growth. Global risk appetite bolsters AUD as a commodity proxy, though elevated US yields pose a potential ceiling. Expect heightened volatility into RBA minutes.
Key Trading Levels
Timeframe Support Pivot Resistance
1H 1.7160 1.7225 1.7290
H4 1.7100 1.7250 1.7350
Daily 1.7000 1.7450 1.7600
Pro Trading Strategy
Target short #EURAUD entries on 1.7200-1.7220 retracements, aiming for 1.7100 (first target) and 1.7000 extension with stops above 1.7300 for 1:2.5 risk-reward. Bullish AUD setups dominate through Q1 if RBA holds firm, potentially probing 1.6800 by March. Watch Eurozone inflation data Friday for any short-term EUR bounce, but the jobs tsunami favors sustained downside pressure. This release dispels slowdown fears, cementing AUD outperformance versus EUR.
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