THE TAKEAWAY: US Initial Jobless Claims (AUG 1) > 326K versus 345K expected, from 345K ( revised higher from 343K) > Economic outlook remains positive > AUDUSD BEARISH

US Initial Jobless Claims for the week ending July 27 showed an upward revision, with the weekly figure declining to 326K following a 345K (revised) advance the week prior. This downward tick beat Bloomberg economic forecasts of 345K, with the headline coming in at its lowest level in 5 years.

This downward showing may further conviction that the US labor market is indeed improving, adding to lingering speculation that the Fed may taper their asset purchasing program come September.

AUD/USD 1-Minute Chart: August 1, 2013

Following the release, the AUD/USD declined nearly -80 pips to 0.89114 signifying a new low in yearly trading. The pair remains to be in a long-term downward trend dating back to April reinforcing bearish sentiment and currently seems to be taking back some losses with a rebound of nearly +35 pips after achieving a new low.

--Written by Jonathan DePaolis, DailyFX Research

To contact Jonathan DePaolis, send inquiries to jdepaolis@fxcm.com