Morning Preview: How to Trade the Aussie Jobs Report
Rowan Crosby • 1 min read
It was a mixed day's trading during the US session, where we saw equities continue to move higher (no surprises there) and volatility hitting all-time lows. The most interest trade was probably the USD/JPY, that pushed higher as the JPY weakened.
We have the Japanese election coming up with Abe still the frontrunner so that might mean the Yen will be weak for some time yet. The US Dollar (DXY) wasn’t really able to rally all that much in what looked to be a quiet session for the most part.
Focus in today's Asian session will be on the AUD, and what the jobs report is going to mean. I see the most risk to the downside. If we have a report that misses the mark then we have a strong chance of falling away significantly. Any move to the upside will be a chance to sell for a longer-term move.
I want to be a seller at 0.7900 as that’s where we have the long-term moving average and also overhead resistance. That might happen if we spike on a positive number. If we are weak I’ll be selling if we can hold below the 0.7770-0.7800 range. There is quite a bit of support here and if we can hold there I think there might be more downside to come.
AUD/USD – 240 min Chart.
Top Economic News
AUD – Employment
CHY – GDP
USD – Philly Fed
CAD – CPI & Retails Sales
USD – Existing Home Sales