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12 Dec 2013
Aus jobs next: Impact on AUD/USD
FXstreet.com (Bali) - AUD/USD was knocked down aggressively during Wednesday's session, as the US budget deal saw traders slightly more confident about Fed tapering in the foreseeable future.
In early Asia, the AUD/USD continues to be pressured, as the Aussie breaks Wednesday's low to find its new cheapest rate for the week at 0.9035. According to John Noonan, Head of FX at IFR Markets: "Leveraged funds noted sellers past 24 hours as they see perfect storm brewing."
Another key point to remember on the recent AUD weakness is the increasing evidence that the Aus jobs market may be, further down the road, badly hit by General Motors' decision to shut down operation on its Holden plant by 2017, highlighting the challenging economic climate in the country.
Traders will now focus on Australian jobs data today at 00:30 GMT, with a downbeat reading exposing, yet again, new trend lows, while upbeat data, unless shockingly strong, looking very much like a good opportunity by the leveraged community to sell on strength intraday.
Technically, according to Valeria Bednarik, Chief Analyst at FXstreet.com: "The hourly chart shows the bearish momentum eases with indicators in oversold levels, yet no signs of a move higher exist now. In the 4 hours chart price broke below its 20 SMA while indicators cross their midlines to the downside, supporting a bearish continuation, with recent low around 0.8990 as short term bearish target."
In early Asia, the AUD/USD continues to be pressured, as the Aussie breaks Wednesday's low to find its new cheapest rate for the week at 0.9035. According to John Noonan, Head of FX at IFR Markets: "Leveraged funds noted sellers past 24 hours as they see perfect storm brewing."
Another key point to remember on the recent AUD weakness is the increasing evidence that the Aus jobs market may be, further down the road, badly hit by General Motors' decision to shut down operation on its Holden plant by 2017, highlighting the challenging economic climate in the country.
Traders will now focus on Australian jobs data today at 00:30 GMT, with a downbeat reading exposing, yet again, new trend lows, while upbeat data, unless shockingly strong, looking very much like a good opportunity by the leveraged community to sell on strength intraday.
Technically, according to Valeria Bednarik, Chief Analyst at FXstreet.com: "The hourly chart shows the bearish momentum eases with indicators in oversold levels, yet no signs of a move higher exist now. In the 4 hours chart price broke below its 20 SMA while indicators cross their midlines to the downside, supporting a bearish continuation, with recent low around 0.8990 as short term bearish target."