Falling unemployment prompts AUD bounce

Australian DollarExpected Range 0.7620 – 0.7720The Australian Dollar rallied through trade on Thursday recouping Wednesday’s losses and touching intraday highs at 0.7722. Buoyed by a stronger than anticipated labour market print the AUD surged back through 0.77 U.S cents after the unemployment rate fell to 5.7% while 26,000 new jobs were added to the economy throughout July. The strong read reduces pressure on the RBA to offer a 3rd rate adjustment and affords the board some time in reviewing the impact of this month’s earlier rate cut. Despite a wider USD sell off the AUD struggled to hold onto moves above 0.7720 and profit taking forced the Aussie lower buying 0.7685 at time of writing. Attentions today turn to a relatively blank economic calendar with direction into the weekend likely to be relatively muted. New Zealand DollarExpected Range 0.7220 – 0.7320The New Zealand dollar edged higher through trade on Thursday buoyed by widespread USD weakness. The Kiwi moved back through 0.7250 and touched intraday highs at 0.7310 as investors continued to amend US interest rate expectations. The NZD struggled to make meaningful moves beyond the 0.73 handle as resistance forms on moves beyond this threshold. With little data available to drive direction through Friday sentiment and continued fall out following Wednesday FOMC meeting minutes will likely steer markets into the weekly close. Great British PoundExpected Range 1.6850 – 1.7250The Great British Pound surged higher through trade on Thursday buoyed by wide spread USD weakness and a stronger than expected Retail Sales performance. Consumer spending jumped 1.4% through July a read well beyond analysts’ expectations and a positive rebound following June’s poor showing. Cable leapt immediately higher advancing 100 points to crash through 1.31 and 1.3150. The strong read suggests consumers have not let fears of a Brexit downturn and the uncertainty that follows hamper spending patterns. Attentions now turn to Public sector borrowing and loan approvals for direction into the weekend and next week’s GDP print. MajorsExpected Range N/AThe USD sell off deepened through trade on Thursday as investors continued to reposition interest rate expectations. The Greenback touched an eight week low against major counterparts the Euro and Swiss Franc while moving back through 100 Japanese Yen. Markets and analysts largely ignored improvements in Manufacturing and a better than expected decline in the number of Americans claiming unemployment benefits forcing the dollar to touch intraday lows at 99.66 JPY and 1.1366 Euro. Investors continued to adjust USD holdings in response to Wednesday FOMC meeting minutes. Having anticipated or hoped a hawkish bias may be proffered investors were again left wanting as the Open Market Committee all but priced out a rate adjustment before the end of the year. CME’s Fed Watch tool now shows just 48% of surveyed analysts anticipate price action in December a dip from markers above 50% before the minutes were released. With little on the macroeconomic calendar through trade on Friday direction will be largely governed by investor sentiment. Profit taking on Yen and Euro should cap gains although a break above resistance at 1.1393 and support at 99.02 could prompt wider corrections into the weekend.  The post Falling unemployment prompts AUD bounce appeared first on Forex news – Iqoption – Binary options.
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