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AUD/USD – A Bottom?
One of the more interesting aspects of recent trading in AUD/USD is the pair’s failure to make fresh lows in the wake of unambiguously weak labor market data. The Australian economy lost -12K jobs overall and even more than that on a full time basis. This was the first time in four months that the jobs picture turned negative indicating that the economy Down Under is quickly losing steam. The news almost assures the market that the RBA will cut rates again in the near term dropping the benchmark rate to a record low 2%. Yet despite all the negative fundamentals the pair held the 7600 level and rallied as the day progressed. This may be simply a pause that refreshes as one sided shorts are cleared out of the market. But unless the pair break the 7600 figure you have to assume that the bottom may be set.
With 7625 now forming a double bottom the pair looks set to push higher wit next resistance at the 7800 level while much bigger resistance at 8000 would likely cap the rally