How to Trade Aussie Employment
Rowan Crosby • 1 min read
The AUD has been a strong performer in recent weeks after a weak USD helped lift the Aussie currency up above the 80 cent mark. For the time being, it appears the AUD is pretty well settled at 0.800 or thereabouts even though the RBA is likely to be not all that impressed with it at those kind of levels.
Today we have the employment data and for the most part, analysts are expecting a reasonably positive outcome. Most are suggesting the unemployment rate will remain steady at 5.6% with some suggesting that we could see a beat on the new jobs number – coming in above 20K.
AUD/USD – 240 min Chart
Watching 80 Closely
For whatever reason, 80 cents seems to be fair value at the moment. So any dramatic shift in either direction might be cause for a mean-reversion type trade.
I’m looking for 0.80500 and 0.79500 to the likely range and any breaks could well be a chance to enter for a move back to 0.8000. That said when expectations are rosy, we often have the opportunity to disappoint. So keep that in mind.