13 Feb 2014
Australian jobs next: Impact on AUD/USD
FXStreet (Bali) - The AUD/USD has been losing some steam on a mix of solid offers clustered at 0.9060/70 resistance coupled with profit taking ahead of the Australian jobs report, due at 00.30 GMT.
The outlook for job growth in Australian is not that bright, as the country transitions from a peak in the mining boom industry. According to Greg Michalowski, technical analyst at FXDD, "overall the trends are not too favorable. The unemployment Rate is trending higher while the Participation Rate is trending lower. The Change in Employment for 2013 was at lowest level since 1996. The Change in the Unemployed for the year was at the highest level since 2009. Not the best of trends."
AUD/USD technicals
From a technical perspective, Valeria Bednarik, Chief Analyst at FXStreet notes, "the hourly chart presents a slightly negative tone, albeit indicators show no actual bearish momentum, suggesting latest slide may just been corrective ,while in the 4 hours chart indicators turned flat in positive territory, while price stands above a still bullish 20 SMA, favoring an upward continuation in the pair."
Meanwhile, Michalowski, speculates that "with the price above the 0.8999 level, if the report is bullish and sends the price higher, look for the momentum to take the price to 0.90785 and on a break of that level toward the 100 day MA (eventually) at 0.9156." However, a slide below 0.8999 "will make the break higher look like a failure, in which case, there should be a resumption of the bearish trend that has seen the price move down from the October high of 0.97567 to the low of 0.8659."
The outlook for job growth in Australian is not that bright, as the country transitions from a peak in the mining boom industry. According to Greg Michalowski, technical analyst at FXDD, "overall the trends are not too favorable. The unemployment Rate is trending higher while the Participation Rate is trending lower. The Change in Employment for 2013 was at lowest level since 1996. The Change in the Unemployed for the year was at the highest level since 2009. Not the best of trends."
AUD/USD technicals
From a technical perspective, Valeria Bednarik, Chief Analyst at FXStreet notes, "the hourly chart presents a slightly negative tone, albeit indicators show no actual bearish momentum, suggesting latest slide may just been corrective ,while in the 4 hours chart indicators turned flat in positive territory, while price stands above a still bullish 20 SMA, favoring an upward continuation in the pair."
Meanwhile, Michalowski, speculates that "with the price above the 0.8999 level, if the report is bullish and sends the price higher, look for the momentum to take the price to 0.90785 and on a break of that level toward the 100 day MA (eventually) at 0.9156." However, a slide below 0.8999 "will make the break higher look like a failure, in which case, there should be a resumption of the bearish trend that has seen the price move down from the October high of 0.97567 to the low of 0.8659."