Aussie Rallying
The Aussie Dollar is pushing higher today on the back of better employment data overnight. While the unemployment rate was seen rising to 4.1% from 4%, in line with expectations, employment was seen rising by 44k jobs, more than double the expected figure. The data comes hot on the heels of the latest RBA meeting earlier this week.
Hawkish Cut from RBA
The bank was seen cutting rates by a further .25% though pushing back firmly against calls for further easing near-term. RBA governor Bullock that inflation was not yet out of the woods and as such, there was limited room for further easing. These comments were taken as a signal that the bank will likely keep rate son hold near-term until inflation takes a fresh leg lower.
Weaker US Dollar
The Aussie is also benefitting from a weaker US Dollar as the greenback continues to languish amidst ongoing trade troubles. While traders struggle to get a grip on what Trump’s trade plans are, USD has ultimately suffered with losses being compounded this week by fresh rallies in gold and JPY. While these safe-havens continue to attract capital over USD, currencies such as AUD stand to remain well bid near-term. For the Aussie, traders will be closely watching incoming headlines on trade tariffs. Any signs that Australia might secure lower tariffs or avoid them altogether will be firmly bullish near-term.
Technical Views
AUDUSD
The rally in AUDUSD has seen the pair breaking out above the 6362 level, now fast approaching a retest of the underside of the broken bull channel. Bulls need to break above this area to encourage fresh momentum for a fuller recovery towards .6520. Near-term, the bull view holds while price remains above .6275, in line with bullish momentum studies readings.
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With 10 years of experience as a private trader and professional market analyst under his belt, James has carved out an impressive industry reputation. Able to both dissect and explain the key fundamental developments in the market, he communicates their importance and relevance in a succinct and straight forward manner.