10 Sep 2015
AUD/USD garners support on strong jobs again
FXStreet (Guatemala) - AUD/USD was back below the 0.70 prior to the key jobs data and Chinese CPI/PPI data in risk-off and sensitive markets, but now trades higher on the back of China CPI Y/Y 2.0% vs 1.8%, 0.5% M/M vs 0.4% exp and better than expected jobs report from Australia.
The Australian employment change was a much higher reading of 17.4k vs 5.0k expected, but lower than last months. The unemployment rate came in as expected at 6.2% beating last months of 6.3% but there had been sentiment that this was going to be a poor result, so it was a relief for the Aussie. At the same time of the releases, the Shanghai Composite opened lower 1.9% while the Hang Seng -2.2% and Nikkei 225 was - 3.7% for the session so far.
AUD/USD rallied to 0.6986 on the release and has maintained a bid tone at time of writing. In the build-up to the key data release for the Australian and Chinese economy, the Aussie was better offered on Wall Street and dropped through the 200 SMA at 0.7020 on the hourly sticks and then dropped like a stone through the key 0.70 handle and support area on the back of the RBNZ cutting rates for a third time this year to 2.75% and panicked investors taking profits on general concerns about the Global economy. A low of 0.6946 had been traded prior to the latest news.
RBA's call
The RBA will be satisfied with this result while they are otherwise willing to act at the appropriate time on interest rates ass they continue to monitor the market. However they do not seem to be in any hurry to do so, when Lowe reinforced the Bank's view yesterday that monetary policy does have its limits, suggesting the RBA is reluctant to lower rates any time soon.
AUD/USD upside levels
The result has left AUD/USD in neutral territory technically while trading below the 50 SMA on the hourly chart and MACD is still in the red. 0.7000 is a key target that it has been unable to rally on this positive data vs strong bearish pressure.
Should the pair find further demand, rallies are expected to struggle at .7205 (last weeks high) and are likely to remain contained by the .7214 4 month downtrend, as explained by Karen Jones, chief analyst at Commerzbank. "The market will need to overcome the .7448 July 21 high to negate downside pressure."
The Australian employment change was a much higher reading of 17.4k vs 5.0k expected, but lower than last months. The unemployment rate came in as expected at 6.2% beating last months of 6.3% but there had been sentiment that this was going to be a poor result, so it was a relief for the Aussie. At the same time of the releases, the Shanghai Composite opened lower 1.9% while the Hang Seng -2.2% and Nikkei 225 was - 3.7% for the session so far.
AUD/USD rallied to 0.6986 on the release and has maintained a bid tone at time of writing. In the build-up to the key data release for the Australian and Chinese economy, the Aussie was better offered on Wall Street and dropped through the 200 SMA at 0.7020 on the hourly sticks and then dropped like a stone through the key 0.70 handle and support area on the back of the RBNZ cutting rates for a third time this year to 2.75% and panicked investors taking profits on general concerns about the Global economy. A low of 0.6946 had been traded prior to the latest news.
RBA's call
The RBA will be satisfied with this result while they are otherwise willing to act at the appropriate time on interest rates ass they continue to monitor the market. However they do not seem to be in any hurry to do so, when Lowe reinforced the Bank's view yesterday that monetary policy does have its limits, suggesting the RBA is reluctant to lower rates any time soon.
AUD/USD upside levels
The result has left AUD/USD in neutral territory technically while trading below the 50 SMA on the hourly chart and MACD is still in the red. 0.7000 is a key target that it has been unable to rally on this positive data vs strong bearish pressure.
Should the pair find further demand, rallies are expected to struggle at .7205 (last weeks high) and are likely to remain contained by the .7214 4 month downtrend, as explained by Karen Jones, chief analyst at Commerzbank. "The market will need to overcome the .7448 July 21 high to negate downside pressure."