7 Nov 2013
AUD/USD triggers stops sub 0.9480, risk of selling strength back
FXstreet.com (Barcelona) - AUD/USD continues its sharp descent along the Asian session, after the shocking 28k full-time jobs lost in the country during the month of October, taking the exchange rate through stops at 0.9480, which led to an acceleration of losses with see no end in sight at the moment.
The topside failure above 0.95 followed by the impulsive selling exposes 0.9450/60 support area, where bids are expected to re-emerge as previously seen throughout Oct, to at least, slow down the AUD bleeding currently developing. On the upside, the intraday bias should see much stronger risk of a market engaging in selling rallies now, unless levels above 0.9520/30 are regained.
While the Australian data release, with headline employment change at 11.1k - mainly due to part-time jobs created - is extremely poor, no doubt about that, Shane Oliver, Head of Investment Strategy and Chief Economist at AMP Capital, reminds on his Twitter account that "labour market is always a lagging indicator, with leading indicators like housing & confidence point to improvement next year", he said, and could be observed by the latest PCI reading today.
The topside failure above 0.95 followed by the impulsive selling exposes 0.9450/60 support area, where bids are expected to re-emerge as previously seen throughout Oct, to at least, slow down the AUD bleeding currently developing. On the upside, the intraday bias should see much stronger risk of a market engaging in selling rallies now, unless levels above 0.9520/30 are regained.
While the Australian data release, with headline employment change at 11.1k - mainly due to part-time jobs created - is extremely poor, no doubt about that, Shane Oliver, Head of Investment Strategy and Chief Economist at AMP Capital, reminds on his Twitter account that "labour market is always a lagging indicator, with leading indicators like housing & confidence point to improvement next year", he said, and could be observed by the latest PCI reading today.