Buying AUD Against Weak Currencies

We like buying AUD on pullbacks against weak currencies for the session (NZD, CAD, JPY, EUR) after the stellar labor report overnight will likely keep the AUD supported.

Current Market Sentiment:

Yesterday’s NY session was uneventful with bank holiday’s in both the U.S. and Canada. The USD continued to be pressure due to profit taking after last week’s strong rally on the back of a stellar U.S. Jobs report.

During Asia we saw the Australian labor report beat expectations with the unemployment rate printing at 5.9% vs the expected 6.2%. The participation rate also increased to 65.0% from 64.9% where it had been expected to stay. Employment jumped 58.6K vs the expected 14.8K. This is the first time the jobless rate has been below 6% since May 2014. The employment increases were driven by gains in full time employment, which was up 40K, and part time employment which was up 18K. This will only strengthen the sentiment that the RBA will remain on hold through the remainder of 2015. Current ASX 30 day interbank cash rate futures are pricing in an 81% probability of no change at the next board meeting.

Coming up we have ECB President Draghi testifying on monetary policy before the Committee on Economic and Monetary Affairs, as well as at the European Parliament a little later about his capacity as Chairman of the European Systemic Risk Board. Later, after NY traders enter the market, we will hear from Fed Chair Yellen when she delivers opening remarks at the Conference on Monetary Policy Implementation in the Post-Crisis Period. Watch the weekly risk events overview here to learn more about these releases.

To get daily market insights from Jarratt Davis delivered to your inbox simply enter your name and email below:

The post Buying AUD Against Weak Currencies appeared first on Jarratt Davis.

Source:: Buying AUD Against Weak Currencies

About the Author
Jarratt Davis is the world’s ranked #2 (2008-2013) Forex Trader by Barclays FX Hedge Index, following years of mastering his art as a self employed trader Jarratt has now entered the field of education and delivers the most robust Forex education package on the market. Jarratt’s mentorship is one of the only programs on the market that is conducted by a verified professional trader. Forex Alchemy readers can get the FREE mini course where Jarratt gives away some of his secrets to success by Clicking Here... [space height="20"] [social type="facebook"][/social] [social type="twitter"][/social] [social type="google-plus"][/social] [social type="youtube"][/social]

Related Posts

Leave a Reply