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. See our updated Privacy Policy here.

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
Wall Street
Bullish
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
  • Key levels in forex tend to draw attention to traders in the market. These are psychological prices which tie into the human psyche and way of thinking. Learn about psychological levels here: https://t.co/8A1QhwMVKo https://t.co/1xhewkdV21
  • (USD Weekly Tech) US Dollar Dominant Uptrend Back In Focus: EUR/USD, USD/JPY, NZD/USD, USD/CHF https://www.dailyfx.com/forex/technical/article/special_report/2021/09/20/US-Dollar-Dominant-Uptrend-Back-In-Focus-EURUSD-USDJPY-NZDUSD-USDCHF.html?CHID=9&QPID=917702&utm_source=Twitter&utm_medium=Dubrovsky&utm_campaign=twr https://t.co/IpwzBGCi7P
  • What is your forex trading style? Take the quiz and find out: https://t.co/YY3ePTpzSI https://t.co/qv8keXFzHZ
  • Join @IlyaSpivak at 22:00 EST/2:00 GMT for his cross-market weekly outlook webinar. Register here: https://t.co/MKGHc9ae64 https://t.co/JMlT0Wn3DK
  • Did you know a Doji candlestick signals market indecision and the potential for a change in direction. What are the top five types of Doji candlesticks? Find out https://t.co/c51s3IBcEu https://t.co/sbejkd7XT5
  • *Reminder: Weekly Strategy Webinar Monday morning at 8:30am ET - https://t.co/lxd5fZnn4H Mid-Week Market Update on Wednesday at 9:30am ET - https://t.co/8SFBJxNZrA
  • Are you new to trading? Technical analysis of charts aims to identify patterns and market trends by utilising different forms of technical chart types and other chart functions. Get a refresher on technical analysis or begin building your knowledge here: https://t.co/qV3c7a4YR3 https://t.co/CJR61cljOe
  • (AUD Weekly Tech) Australian Dollar May Wilt, Downtrends Resume: AUD/USD, AUD/JPY, AUD/NZD, AUD/CAD https://www.dailyfx.com/forex/technical/article/fx_technical_weekly/2021/09/19/Australian-Dollar-May-Wilt-Downtrends-Resume-AUDUSD-AUDJPY-AUDNZD-AUDCAD.html?CHID=9&QPID=917702&utm_source=Twitter&utm_medium=Dubrovsky&utm_campaign=twr https://t.co/DedoOKJMXh
  • Entry orders are a valuable tool in forex trading. Traders can strategize to come up with a great trading plan, but if they can’t execute that plan effectively, all their hard work might as well be thrown out. Learn how to place entry orders here: https://t.co/1mnOXUuBpt https://t.co/GQB0ic9Ahe
  • The continuity seen across these volatility cycles is a good thing. Historical precedence offer a blueprint for identifying conditions supportive for a vol-event to occur, and how they may unfold. Deepen your knowledge of historical volatility here: https://t.co/vg7w10la3j https://t.co/lx3cMSpZNc
Australian Dollar May Fall on ECB After Brushing off Jobs Data

Australian Dollar May Fall on ECB After Brushing off Jobs Data

Daniel Dubrovsky, Strategist

Australian Dollar Talking Points:

  • Australian Dollar emerged unscathed after disappointing local employment data
  • Discouraged workers leaving may have lowered unemployment, full time jobs fell
  • AUD/USD may fall on the ECB rate decision as it faces rising channel support

Find out what the #1 mistake that traders make is and how you can fix it!

A rather brief streak of better-than-expected Australian economic data relative to forecasts was put to an end when May’s jobs report crossed the wires and sent AUD/USD cautiously lower. Heading into the release, the markets were expecting weaker employment gains and lower unemployment. What they got was the latter but not for the optimal reasons.

Australia’s unemployment rate dipped to 5.4 percent from 5.6, economists were looking for 5.5%. This was the lowest outcome since November 2017. Meanwhile the labor force participation rate edged lower to 65.5% unexpectedly from 65.6%, the lowest point since October 2017. This suggests that the lower unemployment rate was accompanied with discouraged workers exiting the worker force.

The amount of jobs gained also rose only by 12.0k, much lower than the 19.0k increase expected. In addition, the bulk of the gains were derived from the part time sector which amounted to +32.6k. The more favorable full time sector ended up losing 20.6k positions. However, in the aftermath of the data release the Australian Dollar pared its losses and was back to square one against its US counterpart.

Australian Jobs Data (all times listed in GMT)

DailyFX Economic Calendar, Australian unemployment rate

This seemed to be due to general US Dollar weakness in the aftermath of Wednesday’s FOMC rate decision. There, the greenback fell as Chair Jerome Powell cooled some hawkish bets in his press conference, sending other currencies higher such as the Euro. With that in mind, attention now turns to the upcoming ECB rate decision. A disappointment in quantitative easing tapering expectations can reignite the greenback, sending its other high-yielding Australian counterpart lower.

AUD/USD 5 Minute Chart: Reaction to Australia Unemployment Rate

AUD/USD Technical Analysis: Slowly Heading Lower

On a daily chart, AUD/USD remains wedged between key support and resistance levels. After its failed push above the February descending line, the pair has been slowly making its way lower to a rising support channel going back to early May.

From here, immediate resistance is 0.7591. A push above it exposes the February line which is closely aligned with the 0.7648 horizontal resistance area. Beyond that lies the trend line from January 2016. On the other hand, a push below support exposes the May 10 low at 0.7426.

AUD/USD Daily Chart: Facing Channel Support Ahead of ECB Rate Decision

AUD/USD Trading Resources:

--- Written by Daniel Dubrovsky, Junior Currency Analyst for DailyFX.com

To contact Daniel, use the comments section below or @ddubrovskyFX on Twitter

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

DISCLOSURES