News & Analysis at your fingertips.

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.

0

Notifications

Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
Subscribe
Please try again
EUR/USD
Mixed
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
Oil - US Crude
Mixed
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
Wall Street
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
Gold
Bearish
GBP/USD
Bullish
USD/JPY
Bearish
More View more
Real Time News
  • Forex quotes reflect the price of different currencies at any point in time. Since a trader’s profit or loss is determined by movements in price, it is essential to develop a sound understanding of how to read currency pairs. Learn how to read quotes here: https://t.co/CNtqrLeetw https://t.co/1w7E3aiWV1
  • A “PIP” – which stands for Point in Percentage - is the unit of measure used by forex traders to define the smallest change in value between two currencies. Learn how to understand pips in forex here: https://t.co/AfAhmI7kAV https://t.co/JiZPRZzwgo
  • RT @IGSquawk: Crypto update: #Bitcoin 56398.30 -7.34% #Ether 2213.91 -7.42% #BitcoinCash 925.49 -12.24% #EOS 6.8039 -15.98% #Stellar 0.5276…
  • Many people are attracted to forex trading due to the amount of leverage that brokers provide. Leverage allows traders to gain more exposure in financial markets than what they are required to pay for. Learn about FX leverage here: https://t.co/BdgFmkzWwW https://t.co/rJUm1W9wrc
  • It’s important for traders to be familiar with FX spreads as they are the primary cost of trading currencies. Understand a pair's spread here: https://t.co/zEEUHZjVIG https://t.co/oZPoyPH2iw
  • Using margin in forex trading is a new concept for many traders, and one that is often misunderstood. Margin is the minimum amount of money required to place a leveraged trade and can be a useful risk management tool. Learn about margin trading here: https://t.co/qZCE5asCzM https://t.co/yN1I9FrfIS
  • There’s a strong correlation between interest rates and forex trading. Forex is ruled by many variables, but the interest rate of the currency is the fundamental factor that prevails above them all. Learn how interest rates impact currency markets here: https://t.co/5l3O9aHQbL https://t.co/DFEfCIl7zF
  • Thin liquidity can concentrate volatility and nowhere is that more evident than with Dogecoin. $DOGEUSD was down as much as 38% today. Watch for heightened bouts of volatility amid quiet risk trends in the week ahead: https://www.dailyfx.com/forex/video/daily_news_report/2021/04/17/Dollar-Outlook-Ties-Into-Key-Data-Rate-Forecasts-and-Even-Dogecoins-Rally-.html https://t.co/JO7O7zUKe9
  • It’s important for traders to be familiar with FX spreads as they are the primary cost of trading currencies. Understand a pair's spread here: https://t.co/zEEUHZjVIG https://t.co/Vv3jZNbLWg
  • Many people are attracted to forex trading due to the amount of leverage that brokers provide. Leverage allows traders to gain more exposure in financial markets than what they are required to pay for. Learn about FX leverage here: https://t.co/BdgFmkzWwW https://t.co/9j004hyzUZ
Australian Dollar Gains on Jolly Holiday Jobs Report Surprise

Australian Dollar Gains on Jolly Holiday Jobs Report Surprise

Daniel Dubrovsky, Strategist

Talking Points:

  • Australia added 61.6k jobs in November and the labor force participation rate rose to 6+ year high
  • The Australian Dollar quickly became the best performing major during early Thursday’s session
  • Will AUD/USD sustain its advance today and perhaps reverse its down trend since early September?

Just started trading AUD/USD? See our beginner guides to help build your strategy!

Australians were in for a jolly holiday surprise when the country experienced a very solid jobs report. This pleasant event helped push the Australian Dollar to quickly become the best performing major early into Thursday’s trading session. So what happened exactly?

The country added 61.6k employed positions in November, well above the 19.0k gain expected. This was the largest addition in a given month since October 2015, more than 2 years ago. The bulk of these gains came from the full-time sector which added 41.9k positions while part-time clocked in at +19.7k.

Another impressive aspect in this data was that the labor force participation rate surged to 65.5% from 65.2% in October (revised higher from 65.1%). We haven’t seen a rate like this in more than 6 years. This was as opposed to expectations of it falling to 65.1%. All the while, the unemployment rate held steady at 5.4% as expected. The country appeared to have no issue absorbing all of this extra labor power.

Not surprisingly, local front-end government bond yields surged alongside the Aussie’s gain. With the markets anticipating what could be one RBA rate hike towards the end of 2018, today’s jobs report appears to have made those odds more likely. For the central bank, employment seems to be heading in the direction it envisioned. However, it remains concerned about subdued wage pressures.

Australian Dollar Gains on Jolly Holiday Jobs Report Surprise

On a daily chart, AUD/USD has put in its largest gain since August 16th on Wednesday. It rose over 0.97 percent marking its best performance in about four months. This was largely thanks to the greenback’s decline despite rather hawkish 2018 Fed rate hike projections. The pair has been pushing higher since bottoming out on December 8th.

However, AUD/USD was struggling to push above former support now resistance around 0.7640 that was established back in late October. Today’s jobs report gave it that lift but can it hold it? A break above this line exposes the 38.2% Fibonacci retracement at 0.7739; and it could also mean that AUD/USD’s downtrend since early September might be in jeopardy.

To add to that, the intraday IG client sentiment reading for AUD/USD now shows that traders are less net-long. The recent changes in sentiment warn that AUD/USD may soon reverse higher despite the fact that traders remain net-long.

If Aussie Dollar turns lower, the June 22nd low around 0.7534 might once again come back into play. A break below this would put the December 8th low at 0.7500 in sight.

Australian Dollar Gains on Jolly Holiday Jobs Report Surprise

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

DISCLOSURES