Australia
Australian Employment numbers out today at 11:30. An expected figure of 9,700, should it come in stronger could see the AUD/USD test the all-important 0.7750 resistance which might force the pair out of its February range.
Short term Traders who have sat short AUD/USD would not have like the price action seen post Janet Yellens comments on Wednesday & Thursday morning. A full retracement of the Yellen move on Wednesday has overnight been extended, pushing the pair through 0.7700.
The Aussie has taken its cues from recent hawkish central bank comments from NZ (leaving rates on hold until June 2019), US (Yellen all but confirming three upcoming hikes – with a March lift off), and the UK (hawkish comments from BoE Monetary Policy Maker Kristen Forbes). Combined with already record low rates in Australia and no concern from governor Lowe about the exchange rate, the Aussie is set for continued strength, should employment be strong today.
US
Overnight President Trump met with large US retail chains, promising that he’s “focused on the issues that will bring economic growth. That’s what we’re all about.”. Once again US stocks, and almost all major global stock markets, rallied overnight with S&P500 and Dow Jones up 0.50%.
US 12-month CPI hit 2.5%, the biggest annual gain since first quarter 2012m while retail sales also improve, up 0.4% m/m.
Europe
According to Eurogroup President Jeroen Dijsselbloem, reaching agreement on Greeces’ bailout progress by this coming Monday is “unthinkable”. Traders advised to keep an eye on further comments and Mondays outcome, and to keep elections this year in the Netherlands, France and Germany on their radar.
Commodities
Crude Oil inventories again smashed expectations, however the commodity settled relatively unchanged at $53.11 on the night.
Gold bounced off 1,217.6 post inflation figures, currently testing yesterday’s highs.
Upcoming Major Economic Announcements
- 11:30AM AUD Employment Change & Unemployment Rate
- 12:30AM USD Building Permits, Philly Fed Manufacturing Index, Unemployment Claims
