FX News – November 7: Aussie Sinks After Disappointing Employment Data

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The aussie suffered today after Australia posted huge losses in fulltime employment in October. Based on the data released, 28,000 fulltime workers lost their job during the period. Meanwhile, employment change also dropped from the previous 3,300 to 1,100. This was worse than analysts' expectations of an improvement by 10,000. Overall, however, Australia's unemployment rate remains at 5.7%.

This report dragged the AUD/USD pair from around the 0.9520 zone to 0.9470. This is a massive drop considering the pair had been hovering around the 0.9500 area just yesterday.

The pair is currently trading at 0.9479, with initial resistance seen at 0.9568, followed by 0.9592. Initial support, on the other hand, is at 0.9508, followed by 0.9484.

The release of the Australian employment data also led to a spike in the GBP/AUD pair. Prior to the release, the pair was hovering at around the 1.6870-1.6880 areas. After that, however, the pair rose sharply to the 1.6970 zone. Its rise has been stalled at the moment, possibly due to the upcoming BoE interest rate decision that will be announced later today (12:00PM GMT).

The GBP/AUD pair is currently trading at 1.6965, with initial resistance seen at 1.6899, followed by 1.6941. Meanwhile, initial support is at 1.6837, followed by 1.6795.

As for the GBP/USD, the pair is also stalled at the moment around the 1.6080 area as traders await the release of the BoE's interest rate decision. In addition, there are also upcoming data from the US, including GDP for Q3, jobless claims, and personal consumption expenditures (all happening at 1:30PM GMT).

The GBP/USD pair is currently trading at 1.6084, with initial resistance seen at 1.6141, followed by 1.6182. Meanwhile, initial support is at 1.6060, followed by 1.6020.

NFP Data Tomorrow

The much-awaited NFP data for October is finally coming up tomorrow (1:30PM GMT). Figures are expected to be much lower as these would likely be affected by the 2-week, debt-related impasse in the US government during that period.

By FX Strategy Team, Published on 7th of November 2013
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