By Fast Brokers – Australia’s Employment Change data printed about in line with analyst expectations while the Unemployment Rate stayed at 5.3%. Hence, Australia’s employment picture is continuing to improve, supporting the RBA’s hawkish monetary policy. On the other hand, the numbers aren’t anything to be overly excited since the employment growth is below levels we saw at the end of 2009 and the beginning of this year. Additionally, recent housing and consumption data disappointing, implying that the RBA could decide to halt its rate hikes at the next meeting if fundamentals don’t exceed expectations. Regardless, Australia’s economy is outperforming other developed nations as Asia drives the global economic recovery. However, investors should keep an eye on recent developments in Greece as uncertainty returns with Greek bond yields hitting record highs. If the Euro should give way once again, this could drag the Aussie lower as well with investors heading to the dollar for safety. Meanwhile, the Aussie is eyeballing previous 2010 highs and may just need a broad-based boost in the risk trade to surmount this technical hurdle. The data wire will be pretty quiet tomorrow, meaning psychological forces could drive the market as the trading week concludes.
Technically speaking, the Aussie faces technical barriers in the form of intraday and 1/14 highs. Speaking of which, the Aussie is creeping towards previous 2010 highs, meaning the 93 area could prove to be a tough barrier to crack over the near-term. As for the downside, the Aussie has multiple uptrend lines serving as technical cushions along with intraday, 4/6, and 3/31 lows. Additionally, the psychological .92 and.91 levels could serve as a technical cushion should it be tested.
Price: .9256
Resistances: .9264, .9278, .9291, .9304, .9316, .9330
Supports: .9247, .9230, .9214, .9194, .9185, .9173, .9161
Psychological: .93, .92 March Lows and Highs
(click chart to enlarge)
Market Commentary provided by Fast Brokers.
Disclaimer: FastBrokers’ market commentary is provided for information purposes only and under no circumstances should be regarded neither as an investment advice nor as a solicitation or an offer to sell/buy any financial product. FastBrokers assumes no responsibility or liability from gains or losses incurred by the information herein contained.
Risk Disclosure: There is a substantial risk of loss in trading futures and foreign exchange. Please carefully review all risk disclosure documents before opening an account as these financial instruments are not appropriate for all investors.
