AUD/USD – Aussie Shrugs Off Weak Employment Change

AUD/USD – Aussie Shrugs Off Weak Employment Change

AUD / USD shows little activity Thursday, continuing the trend that we have seen all week. In the European session on Thursday, the pair is trading in the mid-range of 94. In economic news, the Australian Employment Change rebounded strongly. but was still well below estimates. In the US, major release today is the Unemployment Claims. In other news, Janet Yellen has been nominated by President Obama to head the Federal Reserve. In addition, the minutes of the FOMC meeting indicated that most policy makers favor tapering QE before the end of the year.

Change in Australian Employment, an unlock key, rebounded from two consecutive declines. The indicator posted a gain of 9100, but it was much of the estimated 15,0. The unemployment rate fell from 5.8% to 5.6%, surprising markets which had expected the rate remains unchanged in September. However, lower rates can be attributed to a decrease in the participation rate, which fell to 64.9%, a 7-year low. The Aussie initially lost ground after the employment release, but has since recovered.

President Obama appointed Susan Yellen to head the Federal Reserve. Yellen take over from Bernard Bernanke, who is due to retire next year. Yellen, who is currently vice president of the Fed, became the main candidate after former Treasury Secretary Lawrence Summers withdrew his candidacy. Yellen is considered favorable to the status quo in position and supported Bernanke in three rounds of QE increases. His appointment must be confirmed by the Senate, but it should be widely approved for the new position.

The minutes of the policy meeting in September Federal Reserve were released Wednesday. At the meeting, the Fed surprised markets by opting to stay on course with its bond purchase program, which is taking place at 85 billion $ / month. The minutes said that the decision not to start narrowing was a "close call". This has increased speculation that we could see narrowing before the end of the year. However, the monkey wrench in all this is the financial uncertainty of the judgment and the threat of the debt crisis. In addition, the Fed relies heavily on key releases such as non-farm payrolls, which were hanging off. It is unlikely that we will see any attempt to reduce QE before December at the earliest.

As if Congress does not have its plate full with the budget deficit and to stop a debt ceiling crisis and could trigger a devastating financial crisis. The US has a debt of $ 16700000000000, and the country will run out of funds to pay off debt on October 17 unless Congress authorizes the raising of the debt ceiling. Otherwise, the US could potentially default on its obligations, which could cause chaos in national and international markets. There are a lot of bad blood between Republicans and Democrats on the closure, and this will undoubtedly complicate negotiations on the debt ceiling. There are signs of some progress, the talks between the parties on the possibility of a short-term increase in the debt limit, avoiding a default for now.

AUD / USD for Thursday, October 10, 2013

AUD / 10 USD October at 12:15 GMT

AUD / USD 0.9434 H: L 0.9472: 0.930

AUD / USD technical

S3	S2	S1	R1	R2	R3
0.9221	0.9328	0.9400	0.9508	0.9613	0.9700

• AUD / USD continues to trade quietly in the middle range of 94 to Thursday trading.
• the pair faces resistance at 0.9508. This is followed by a 0.9613 resistance line.
• On the downside, the pair continues to receive support at the round number of 0.9400. This is a small line that could face strong pressure if the Australian dollar weakens. The next support line is at 0.9328
• Current range :. 0.9400 to 0.9508

Other levels in both directions

• Below: 0.9400 , 0.9328, 0.9221, 0.9135 and 0.089
• above: 0.9508, 0.9613, 0.9700 and 0.9821

Open Ratio positions OANDA

AUD / USD is showing movement towards short positions Thursday trading. This is reflected in the current movement of the pair, as the Australian dollar fell slightly versus the US currency. The majority of open positions were long, reflecting a bias towards dollar trader wins the Australian terrain.

The pair continues to trade quietly Thursday trading. The Australian dollar did not react to weak Australian employment data, but this may change in the session in North America when the US releases of unemployment claims, a key event.

AUD / USD Fundamentals

• 0:00 the Australian MI Inflation Expectations. Actual 2.0%.
• 0:30 Australian Employment Change. 9.1K estimate. Actual 15.2K.
• 0:30 Australian Unemployment Rate. 5.8% estimate. Actual 5.6%.
• 12:00 US Secretary of the Treasury Jack Lew Speaks. Lew will testify on the debt limit before the Senate Finance Committee.
• 24:30 US unemployment claims. 307K estimate.
• 1:45 p.m. US FOMC Member Bullard Speaks James.
• 2:30 p.m. US natural gas storage. 96B estimate.
• 5:01 p.m. US Bond Auction 30.
• 4:45 p.m. US FOMC Member Daniel Tarullo Speaks.

* the major releases are highlighted in bold

* All GMT release time

This article is only for general information purposes. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or its subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.

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