AUDUSD Drops below 1.0550 Before Employment Data

The Australian dollar slid versus most of its 16 major peers before a report this week that may show an increase in unemployment, adding to signs of weakness in the domestic economy.

Australia’s currency fell against the dollar on prospects employers in the South Pacific nation last month added the fewest jobs since a decline in August. Both the so-called Aussie and its New Zealand counterpart, known as the kiwi, tumbled from the highest levels in more than four years versus the yen after comments by Japan’s economy minister stoked speculation the country won’t try to spur further losses in its currency.

“There is underlying weakness in the labor market,” said Andrew Salter, a currency strategist in Sydney at Australia & New Zealand Banking Group Ltd. (ANZ) “If we do a get a weaker unemployment read, the market will look to take the Aussie lower.”

via Bloomberg

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Stuart McPhee

Stuart McPhee

Senior Currency Technical Analyst at Market Pulse
Stuart McPhee has more than 16 years’ experience as a private trader and he specializes in technical market analysis of major currency pairs. He is the author of several bestselling trading books, most recently the fourth edition of his popular book “Trading in a Nutshell” (John Wiley), and he contributes articles to daily newsletters and blogs. He produces articles and videos on the how-tos of technical trading. Based in Australia, Stuart speaks at conferences and events worldwide.
Stuart McPhee