FXstreet.com (Barcelona) - Ahead of the Australian jobs data (00.30GMT), expectations are quite subdued on today's print, with forecasters anticipating an almost flat number, amid a resilient AUD/USD, which "continues to trade at the top of our range of fair value models and on the edges of a break out of its key 1.06 resistance" notes Sebastien Galy, FX strategist at Societe Generale.
Mr. Galy adds: "AUD like most high yielders or safe havens is expensive and overbought. Without a bearish trigger, it is simply not yet correcting. If we do get a positive surprise we will break to the upside. This is not the central scenario. The most likely outcome is some disappointment as a high AUD does its damage to the economy, but a setback is likely to be somewhat contained in an environment that is generally risk supportive."
Mr. Galy adds: "AUD like most high yielders or safe havens is expensive and overbought. Without a bearish trigger, it is simply not yet correcting. If we do get a positive surprise we will break to the upside. This is not the central scenario. The most likely outcome is some disappointment as a high AUD does its damage to the economy, but a setback is likely to be somewhat contained in an environment that is generally risk supportive."
