13 Feb 2014
AUD/USD dropping like a stone on poor employment data
FXStreet (Guatemala) - AUD/USD is dumping on negative employment data.
AUD/USD dropped the 0.9000 handle and dumped 40 pips in a blink of an eye on negative employment data. The pair continues to slide on the 5 minute chart recording a low of 0.8937 at the time of writing, minutes after the data has been released. Unemployment rate is 6.0% vs 5.8% expected and the employment change was -3,700 vs 15,000 expected.
The AUD had been firmly advancing following strong Australian house price data and also from last Friday’s Statement on Monetary Policy the RBA revised up its forecasts for both growth and inflation. However, strategists at Rabobank noted,” Australia’s economy is still vulnerable to negative shocks from China and based on our concerns for Chinese growth we are maintaining are 12 mth AUD/USD forecast at 0.86”. There has been some debate as to whether or not the Aussie is forming a bottom here and holding the 0.9000 could be key if a correction is going to be on the cards. This data mat have just changed that possibility.
AUD/USD Levels
The 20 DMA is 0.8836, the 50 DMA is 0.8908 and the 20 DMA is 0.9239. RSI (14) reads 51.66. Supports are ascending from 0.8938. Spot is 0.8943.
AUD/USD dropped the 0.9000 handle and dumped 40 pips in a blink of an eye on negative employment data. The pair continues to slide on the 5 minute chart recording a low of 0.8937 at the time of writing, minutes after the data has been released. Unemployment rate is 6.0% vs 5.8% expected and the employment change was -3,700 vs 15,000 expected.
The AUD had been firmly advancing following strong Australian house price data and also from last Friday’s Statement on Monetary Policy the RBA revised up its forecasts for both growth and inflation. However, strategists at Rabobank noted,” Australia’s economy is still vulnerable to negative shocks from China and based on our concerns for Chinese growth we are maintaining are 12 mth AUD/USD forecast at 0.86”. There has been some debate as to whether or not the Aussie is forming a bottom here and holding the 0.9000 could be key if a correction is going to be on the cards. This data mat have just changed that possibility.
AUD/USD Levels
The 20 DMA is 0.8836, the 50 DMA is 0.8908 and the 20 DMA is 0.9239. RSI (14) reads 51.66. Supports are ascending from 0.8938. Spot is 0.8943.