- Fears of the global recession put the AUD/USD pair under pressure.
- Comments from RBA’s Debelle, July month jobs data, will be in the spotlight.
- Trade/political news will also entertain market players.
Having become the biggest losers in G10 fraternity by the end of Wednesday, AUD/USD seesaws near 0.6750 during initial hours of Asian morning on Thursday.
China’s disappointing Industrial Production and Retail Sales countered the Aussie Wage Price Index and weighed on the macro risk sentiment. Also favoring the bears was the dragon nation’s lack of happiness with the US measures on delaying the trade tariffs on some of the goods and more than 10-week old protests in Hong Kong.
With this, the 10-year and two-year Treasury yields on the US note inverted for the first time since 2007 and triggered global recession fears, pushing traders off from riskier assets like the Australian Dollar (AUD) and equities.
Investors are now looking forward from the speech by the Reserve Bank of Australia’s (RBA) Assistant Governor (Risk Management Committee) Guy Debelle ahead of July month Employment Change and Unemployment Rate data.
Forecasts suggest an improvement in Employment Change to 14.0K from 0.5K prior with no change expected in Unemployment Rate figure of 5.2%. “Following zero employment growth in June, we expect a modest increase of 10k in July. However, if the participation rate stays around its record highs, this could see the unemployment rate rise to 5.3%,” says ANZ.
While early job market indicators haven’t been positive from Australia, any upside surprises will be welcomed with great zeal to recover recent losses.
Technical Analysis
Prices need to provide a sustained break below 0.6730 in order to lure sellers targeting 0.6700 and the latest low surrounding 0.6677. On the other hand, 0.6822 and 0.6831 seem nearby upside resistances to watch during the quote’s increase.
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
EUR/USD clings to daily gains above 1.0650
EUR/USD gained traction and turned positive on the day above 1.0650. The improvement seen in risk mood following the earlier flight to safety weighs on the US Dollar ahead of the weekend and helps the pair push higher.
GBP/USD recovers toward 1.2450 after UK Retail Sales data
GBP/USD reversed its direction and advanced to the 1.2450 area after touching a fresh multi-month low below 1.2400 in the Asian session. The positive shift seen in risk mood on easing fears over a deepening Iran-Israel conflict supports the pair.
Gold holds steady at around $2,380 following earlier spike
Gold stabilized near $2,380 after spiking above $2,400 with the immediate reaction to reports of Israel striking Iran. Meanwhile, the pullback seen in the US Treasury bond yields helps XAU/USD hold its ground.
Bitcoin Weekly Forecast: BTC post-halving rally could be partially priced in Premium
Bitcoin price shows no signs of directional bias while it holds above $60,000. The fourth BTC halving is partially priced in, according to Deutsche Bank’s research.
Week ahead – US GDP and BoJ decision on top of next week’s agenda
US GDP, core PCE and PMIs the next tests for the Dollar. Investors await BoJ for guidance about next rate hike. EU and UK PMIs, as well as Australian CPIs also on tap.