Morning Preview: Get Ready for NFP
Rowan Crosby • 1 min read
Good morning traders
It’s another big day on the markets this Friday as we wait on the state of the US jobs market, as nonfarm payrolls are due for release prior to the US session.
Overnight the USD continued the whipsaw that we’ve been getting used to over the past week. It seems that there are some expectations that the NFP number will come in lower than expectations. A weaker number means that the US will be less likely to raise interest rates, which weighs on the USD. Overall the USD was weaker against most currencies in anticipation.
Whenever we have a NFP day, I expect a quiet session. It’s arguably the most anticipated event on the monthly calendar and as a result we can have a quiet period of trade in the hours and sometimes days leading up to it.
AUD Grinding Higher
There’s more Chinese manufacturing data out today that’s worth keeping an eye on for AUD traders, as well as the early data out prior to the open.
For the most part I’m looking for a grind higher on the back of the USD weakening as we head toward the start of the US session. If you can get a look at buying a dip, near the longer term trendline, that might be the best play for today. But be sure not to hold any positions into the release as we can expect volatility.