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Aussie extends losses, job data next

It has been a rough week for the Australian dollar, which has is down close to 2 per cent this week. AUD/USD is currently trading at 0.7232, down 0.28% on the day.

Soft job numbers could extend Aussie slide

Australia releases key employment data early on Thursday, and the forecast is not encouraging. The economy is expected to have shed 42.5 thousand in July, after a gain of 29.1 thousand in June. The unemployment rate is projected to tick upwards to 5.0%, up from 4.9%. Wage growth data was released today, with Q2 showing a gain of 0.4%, down from 0.6% in the previous two quarters.

With much of Australia under lockdown due to the outbreak of the delta variant of Covid, employment numbers could get worse and send the Australian dollar lower. The currency has fallen 1.9% this week and earlier today fell to a 10-month low. Unless the upcoming job numbers are stronger than expected, it could continue to be a rough week for the Australian dollar.

The Federal Reserve will host a summit in Jackson Hole next week, and the meeting will be closely watched for any signals regarding a taper, possibly at the December meeting. Fed Chair Powell has taken great pains to telegraph his plans and keep the market in the loop. A tapering of the asset purchase program would be a massive move, and the Fed would make sure to clearly notify the markets of its plans at Jackson Hole or at the September meeting. With investors on the alert for a tapering signal, and an upsurge in Covid sapping confidence in the global recovery, sentiment towards the safe-haven US dollar should remain strong.

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AUD/USD Technical

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For a look at all of today’s economic events, check out our economic calendar. www.marketpulse.com/economic-event [2]

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 [6]

Market Analyst at OANDA [7]
A highly experienced financial market analyst with a focus on fundamental analysis, Kenneth Fisher’s daily commentary covers a broad range of markets including forex, equities and commodities. His work has been published in several major online financial publications including Investing.com, Seeking Alpha and FXStreet. Based in Israel, Kenny has been a MarketPulse contributor since 2012.
Kenny Fisher

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