Aussie jobs preview - what to expect in AUD/USD?

Ross J Burland FXStreet

AUD/USD has been traded a few pips away from the September highs of 0.7731 in a pro-risk environment ahead of the Aussie jobs data scheduled for today halfway into the Tokyo open.

US dollar index erases losses and rises marginally on Wednesday

AUD/USD has been trading in a bullish trend since 13th October and has made a full recovery of the downside that ensued in the end of September business. It has broken higher overnight and in a significant chart and bullish pattern of the head-and-shoulders neckline since August, among other bullish technical patterns. The key upside target is the mid August high of 0.7750. Can the jobs data offer bulls the amunition to get there today?

The jobs data will be keenly monitored by observers given the emphasis that the RBA minutes recently put on this factor of the Aussie economy. " Sample volatility associated with attachment to the labour force largely explained Aug volatility and should also explain a consequent rebound in September. We look for a 30k rise in jobs against the market's 15k expectation," explained analysts at Westpac, adding, "The unemployment rate is expected to edge up to 5.7%, from 5.6%."

AUD/USD levels

Analysts at Westpac offered AUD/USD in a 1-3 month outlook as follows: "While further gains to around 0.77 are possible during the month ahead, driven in part by the faltering US dollar and yield-chasing flows, the AUD is losing energy (perhaps a reflection of its declining yield advantage). By year end, there’s a case for a correction towards 0.74 if the Fed tightens in December as we expect."

Meanwhile, spot is presently trading at 0.7724, and next resistance can be seen at 0.7728 (Daily Classic R2), 0.7729 (Daily High), 0.7731 (Yesterday's High), 0.7734 (Weekly Classic R2) and 0.7764 (Daily Classic R3). Next support to the downside can be found at 0.7722 (Daily Open), 0.7714 (Daily Low), 0.7699 (Hourly 20 EMA), 0.7697 (Daily Classic R1) and 0.7692 (Monthly High).

Author

Ross J Burland

FXStreet

Ross J Burland, born in England, UK, is a sportsman at heart. He played Rugby and Judo for his county, Kent and the South East of England Rugby team.

EUR/USD tests nine-day EMA support near 1.1850

EUR/USD inches lower during the Asian hours on Monday, trading around 1.1870 at the time of writing. The 14-day Relative Strength Index momentum indicator at 56 stays above the midline, confirming improving momentum. RSI has cooled from prior overbought readings but stabilizes above 50, suggesting dips could stay limited before buyers reassert control.

GBP/USD flat lines as traders await key UK macro data and FOMC minutes

The GBP/USD pair kicks off a new week on a subdued note and oscillates in a narrow range, just below mid-1.3600s, during the Asian session. Moreover, the mixed fundamental backdrop warrants some caution for aggressive traders as the market focus now shifts to this week's important releases from the UK and the US.

Gold slides below $5,000 amid USD uptick and positive risk tone; downside seems limited

Gold attracts fresh sellers at the start of a new week and reverses a part of Friday's strong move up of over $150 from sub-$4,900 levels. The commodity slides back below the $5,000 psychological mark during the Asian session, though the downside potential seems limited amid a combination of supporting factors.

Bitcoin, Ethereum and Ripple consolidate within key ranges as selling pressure eases

Bitcoin and Ethereum prices have been trading sideways within key ranges following the massive correction. Meanwhile, XRP recovers slightly, breaking above the key resistance zone. The top three cryptocurrencies hint at a potential short-term recovery, with momentum indicators showing fading bearish signs.

Global inflation watch: Signs of cooling services inflation

Realized inflation landed close to expectations in January, as negative base effects weighed on the annual rates. Remaining sticky inflation is largely explained by services, while tariff-driven goods inflation remains limited even in the US.

Ripple Price Forecast: XRP potential bottom could be in sight

Ripple edges up above the intraday low of $1.35 at the time of writing on Friday amid mixed price actions across the crypto market. The remittance token failed to hold support at $1.40 the previous day, reflecting risk-off sentiment amid a decline in retail and institutional sentiment.