Markets caught off-guard by booming Australia jobs report
Australia jobs data was supposed to be a non-event, with a strong consensus there would be a correction to October's upside blowout.
But markets caught off-guard by booming Aus jobs report which showed employment change and headline data at +71.4k beating expectations at -10.0k.
Aussie soared post data, taking the pair to 0.7334, but has eased therefrom to currently trade at 0.7293.
Major resistance is seen at 0.7387 (converging trendline and 38.2% Fib of 0.8160 - 0.6907 fall), also the pair still trades below the 200 DMA at 0.7452 and only breaks above can see the tide turn.
If commodity & equity markets calm down, the AUD could move a lot higher in the lead-up to the Dec 16 FOMC decision.
Crude oil prices edged up early on Thursday, supported by a fall in U.S. crude inventories after 10 straight weeks of builds, but a global oversupply and cheap oil are still dominating the broader market.
Key support on the downside is at 0.7240/50 - where it was trading before booming jobs data, and then at 0.72 (trendline).
Our short call yesterday was stopped out after the spike post jobs data, the pair though hit lows of 0.7172 (falling short of our target at 0.71).
Recommendation: We would still look to sell rallies in the pair around 0.73, placing stops at 0.7390, TP: 0.72, 0.7150, 0.71
But markets caught off-guard by booming Aus jobs report which showed employment change and headline data at +71.4k beating expectations at -10.0k.
Aussie soared post data, taking the pair to 0.7334, but has eased therefrom to currently trade at 0.7293.
Major resistance is seen at 0.7387 (converging trendline and 38.2% Fib of 0.8160 - 0.6907 fall), also the pair still trades below the 200 DMA at 0.7452 and only breaks above can see the tide turn.
If commodity & equity markets calm down, the AUD could move a lot higher in the lead-up to the Dec 16 FOMC decision.
Crude oil prices edged up early on Thursday, supported by a fall in U.S. crude inventories after 10 straight weeks of builds, but a global oversupply and cheap oil are still dominating the broader market.
Key support on the downside is at 0.7240/50 - where it was trading before booming jobs data, and then at 0.72 (trendline).
Our short call yesterday was stopped out after the spike post jobs data, the pair though hit lows of 0.7172 (falling short of our target at 0.71).
Recommendation: We would still look to sell rallies in the pair around 0.73, placing stops at 0.7390, TP: 0.72, 0.7150, 0.71
