- AUD/USD turns positive to regain 0.7300 after surprisingly positive Aussie jobs report.
- Australia’s August month Employment Change rose 111K, Unemployment Rate dropped to 6.8%.
- Market sentiment turns sober as Asian traders fear a brake on easy money.
- US President Donald Trump’s vaccine hopes failed to please the buyers, busy day to watch ahead.
AUD/USD takes the bids near 0.7305 to reverse the early-Asian losses after Australia’s August month employment data flashed welcome numbers on Thursday. In doing so, the Aussie pair defies the downbeat performance of equities during the post-Fed action.
Surprise, surprise, surprise!
While markets anticipated Victoria’s lockdown to weigh on the headline employment data, Australia’s Unemployment Rate dropped below 7.7% forecast and 7.5% prior to 6.8% in August. Additionally, the Employment Change also crossed -50K expected with +111K figures. The data can help the RBA to keep its recent cautious optimism and was well received by the Aussie buyers.
Read: Aussie jobs data beats all round sends AUD/USD 0.3% higher
Having initially cheered US President Trump’s vaccine hopes, global trade sentiment sours amid hopes of stagnant monetary policies and no more rate cuts. With the Fed’s dot-plot indirectly suggesting the American monetary policymakers’ reluctance to act immediately, global markets fear the rest of the central banks, immediately followed by the BOJ and BOE, will also hit the stops on any more easy money.
Also acting as a trade negative measure is American leader Trump’s dislike for the World Trade Organization (WTO) as well as US House Speaker Nancy Pelosi’s hardstand for the stimulus package that results in the policy deadlocks.
Amid all these plays, S&P 500 Futures and Japan’s Nikkei 225 both mark around 0.30% losses while Australia’s ASX 200 and New Zealand’s NZX 50 are down 0.60% by the press time.
Having witnessed the market’s reaction to Aussie data, traders may look forward to the Bank of Japan’s (BOJ) monetary policy meeting for immediate direction ahead of the long day comprising BOE and US Jobless Claims. It should, however, be noted that the risk catalysts can keep the driver’s seat and may offer magnified moves moving on.
Technical analysis
The pair’s sustained trading beyond the 21-day EMA, at 0.7263 now, directs the bulls towards the August 31 high of 0.7416 with the 0.7400 threshold acting as an intermediate halt. Additionally, an ascending trend line from July 14, currently around 0.7225, also acts as strong downside support.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
AUD/USD tumbles toward 0.6350 as Middle East war fears mount
AUD/USD has come under intense selling pressure and slides toward 0.6350, as risk-aversion intensifies following the news that Israel retaliated with missile strikes on a site in Iran. Fears of the Israel-Iran strife translating into a wider regional conflict are weighing on the higher-yielding Aussie Dollar.
USD/JPY breaches 154.00 as sell-off intensifies on Israel-Iran escalation
USD/JPY is trading below 154.00 after falling hard on confirmation of reports of an Israeli missile strike on Iran, implying that an open conflict is underway and could only spread into a wider Middle East war. Safe-haven Japanese Yen jumped, helped by BoJ Governor Ueda's comments.
Gold price jumps above $2,400 as MidEast escalation sparks flight to safety
Gold price has caught a fresh bid wave, jumping beyond $2,400 after Israel's retaliatory strikes on Iran sparked a global flight to safety mode and rushed flows into the ultimate safe-haven Gold. Risk assets are taking a big hit, as risk-aversion creeps into Asian trading on Friday.
Dogwifhat price pumps 5% ahead of possible Coinbase effect
Dogwifhat price recorded an uptick on Thursday, going as far as to outperform its peers in the meme coins space. Second only to Bonk Inu, WIF token’s show of strength was not just influenced by Bitcoin price reclaiming above $63,000.
Israel vs. Iran: Fear of escalation grips risk markets
Recent reports of an Israeli aerial bombardment targeting a key nuclear facility in central Isfahan have sparked a significant shift out of risk assets and into safe-haven investments.