AUD/USD – Aussie Posts Gains on Solid Australian Job Data

The Australian dollar has posted gains on Monday, as AUD/USD is trading in the low-0.87 range. The Aussie posted sharp losses on Friday, losing over 100 points and dipping into 0.86 territory. On the release front, ANZ Job Advertisements, an important employment indicator, posted a solid gain of 0.9% last month. MI Inflation Gauge continues to post weak numbers, posting a gain of 0.1%. AIG Construction Index will be released later in the day. There are no US releases on Monday.

Early on Tuesday, the RBA will be in the spotlight. The Cash Rate is expected to remain at 2.50%, where it has been pegged since July 2013. The RBA has often stated that the Aussie is overvalued and weighing on a recovery, but the currency has lost some 500 points since the last RBA statement in September.

US employment data sparkled on Friday. Nonfarm Employment change rebounded in September, climbing to 248 thousand. This exceeded expectations of 216 thousand. The unemployment rate dipped to 5.9%, the first time it’s been below the 6% threshold in over six years. With QE slated to end later this month, the focus will shift to the timetable for an interest rake hike. Strong job numbers such as these could put pressure on the Fed to make an interest rate move sooner rather than later.

AUD/USD for Monday, October 6, 2014

AUD/USD October 6 at 12:55 GMT

AUD/USD 0.8716 H: 0.8744 L: 0.8666

 

AUD/USD Technical

S3 S2 S1 R1 R2 R3
0.8456 0.8550 0.8668 0.8763 0.8820 0.8953

 

  • AUD/USD posted strong gains in the Asian and European sessions, breaking past resistance at 0.8662. The pair has edged lower in North American trade.
  • 0.8668 has switched to a support role as the Aussie trades at higher levels. 0.8550 is stronger.
  • 0.8763 is an immediate resistance line. 0.8820 is next.
  • Current range: 0.8668 to 0.8763

Further levels in both directions:

  • Below: 0.8668, 0.8550, 0.8456 and 0.8315
  • Above: 0.8763, 0.8820, 0.8953, 0.9020 and 0.9119

 

OANDA’s Open Positions Ratio

AUD/USD ratio is pointing to gains in long positions on Monday. This is consistent with the pair’s movement, as the Aussie has posted gains. The ratio has a majority of long positions, indicative of trader bias towards AUD/USD continuing to move to higher ground.

 

AUD/USD Fundamentals

  • 00:30 Australian ANZ Job Advertisements. Actual 0.9%.
  • 23:30 Australian AIG Construction Index.

* Key releases are highlighted in bold

*All release times are GMT

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.

Kenny Fisher

Kenny Fisher

Currency Analyst at Market Pulse
Kenny Fisher joined OANDA in 2012 as a Currency Analyst. Kenny writes a daily column about current economic and political developments affecting the major currency pairs, with a focus on fundamental analysis. Kenny began his career in forex at Bendix Foreign Exchange in Toronto, where he worked as a Corporate Account Manager for over seven years.