We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site.

Free Trading Guides
EUR/USD
Bearish
Oil - US Crude
Mixed
Wall Street
Bullish
Gold
Bearish
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
GBP/USD
Mixed
USD/JPY
Bearish
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
More View more
Real Time News
  • AUD/USD has had the most impressive show of trend over the past couple of months with the pair gaining almost 1500 pips from the March low. Get your $AUDUSD technical analysis from @JStanleyFX here: https://t.co/vLz4Rpln3u https://t.co/AOwnJja5V8
  • Has the #Euro been saved? Find out from @CVecchioFX here: https://t.co/eiXfOTyGa6 https://t.co/AyRiYpb4cN
  • U.S. Market Analyst at https://t.co/JsVsSmefgR, Shain Vernier covers - ✔️ Safe haven assets in volatile markets ✔️ Central banks and governments ✔️ How will commodities trade in a recession Only on Trading Global Markets Decoded #podcast. Tune in here: https://t.co/1UmEzEbwiy https://t.co/ygwjGNvS61
  • The $USD, Euro, British Pound and Australian Dollar will all be at the mercy of political developments in Asia, Europe and North America this week. An avalanche of PMI data will set the backdrop. Find out from @ZabelinDimitri here: https://t.co/L8cfAgVx94 https://t.co/THWhPAS6AM
  • The price of #gold plunged 1% immediately after the stunning US jobs report crossed the wires. Get your market update from @RichDvorakFX here: https://t.co/8i0L6YIqjy https://t.co/y9dIXazJf9
  • S&P 500, Dow Jones, Nasdaq explode higher with stocks surging in response to shockingly better-than-expected monthly jobs data. Get your #equities market update from @RichDvorakFX here: https://t.co/nuMVWOzzuC https://t.co/M3nGBjd7kZ
  • The record-breaking NFPs increase behind us and the FOMC rate decision on Wednesday sets the tone for my trading video: 'Dow Soars Above 200-Day Average on NFPs, Will the #Fed Keep the Dollar Sliding' https://www.dailyfx.com/forex/video/daily_news_report/2020/06/06/Dow-Soars-Above-200-Day-Average-on-NFPs-Will-the-Fed-Keep-the-Dollar-Sliding.html?ref-author=Kicklighter&QPID=917719&CHID=9 https://t.co/kquvec5HVc
  • Seasonal factors, oversupply issues and the outbreak of COVID-19 has seen the price of liquefied #naturalgas (LNG) fall to 22-year lows (1.519), with the situation exacerbated by ‘fuller-than-normal’ storage facilities. Get your market update here:https://t.co/VOqfkBQ4aR https://t.co/OsaphmqEmu
  • Are recent gains in the Indian Rupee and Nifty 50 warranted? Risks are brewing in the background, leaving USD/INR in a consolidative setting as the Nifty pressures resistance. Get your $USDINR market update from @ddubrovskyFX here:https://t.co/svDaSdprvN https://t.co/kgddX1ZHe4
  • I approve of this dry humor. https://t.co/b42GmIZDlL
AUDUSD Poised for Employment Data

AUDUSD Poised for Employment Data

2012-07-11 09:00:00
Walker England, Trading Instructor,
Share:

One of the most awaited events on the economic calendar this week is the release of the unemployment numbers in Australia. While the event is not traditionally as volatile as NFP, these numbers are significant, and can give a trader insight into the strength of the Australian economy. As well, policy makers at the Reserve Bank of Australia (RBA) will be using this information to make future policy decisions.

Below you will see a chart displaying the historic unemployment rate out of Australia. This month, expectations are set for the creation of no net new jobs with the economy displaying an unemployment rate of 5.2%.

AUDUSD_Poised_for_Employment_Data_body_Australia_Unemployment_Rate.png, AUDUSD Poised for Employment Data

Below we can see another chart, this time graphing Australia’s benchmark interest rates. This rate is set by the central monetary authority and can be used to heat up or slow down the Aussie economy. Through 2012 the RBA has taken expansionary measures lowering this rate down to its current levels at 3.50%. If unemployment increases more than expected, this may signal another potential round of rate decreases through the RBA.

Ultimately with expectations of a rate cut, it would be expected that the Aussie currency would decrease in value. To learn more, let’s take a look at how this policy has affected price for 2012.

AUDUSD_Poised_for_Employment_Data_body_Australia_Interest_Rate.png, AUDUSD Poised for Employment Data

Below we can see current price action on an AUDUSD daily chart and can better see the pairs decline. Since the RBA began lowering rates the pair has decreased as much as 1275 pips from its 2012 high residing at 1.0855. Over the past month however price has been rallying, with a line of support being held near 1.0150. Upon a negative outcome of employment numbers, traders should watch this point for a potential breakout. With the formation of lower lows, it is expected that the AUDUSD downtrend may begin again with the potential to challenge previous lows set at .9580 on June 1st.

AUDUSD_Poised_for_Employment_Data_body_Picture_1.png, AUDUSD Poised for Employment Data

My preference is to set an entry to sell the AUDUSD under 1.0150. Stops should be placed above resistance near 1.0250. Using a minimum 1:2 Risk/Reward ratio primary limits can be set at .9950 or better.

Alternative scenarios include price bouncing off support to a higher high.

---Written by Walker England, Trading Instructor

To contact Walker, emailinstructor@dailyfx.com. Follow me on Twitter at @WEnglandFX.

To be added to Walker’s e-mail distribution list, send an email with the subject line “Distribution List” to instructor@dailyfx.com

DailyFX providesforex newson the economic reports and political events that influence the currency market. Learncurrency tradingwith a free practice account and charts from FXCM.

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES

News & Analysis at your fingertips.