- 4.5K and 5.7% estimates convincingly with 37.4K employment and 5.7% unemployment rate respectively. Given last month’s 60K figure, concerns over the reliability of this ABS data have been raised again. The AUD/USD saw a 60pip rally which has been supported throughout the day.
- Consolidation in the ASX200 and US Equity Indices after last night’s sell offs. Some slight unwinding of these risk off events in USD/JPY also – 109.60 the next major support level in this pair.
- Concerns over Trumps handling of FBI investigations is leading US democrats to express support over the possibility of Trumps impeachment. The DOW has priced in over 3,000 points off the back of Trumps promises from last Novembers election win, and having traded recent all-time highs, the market has plenty of room to fall in the event further pressure put on Trumps leadership.
- Should republicans show support of Trump and this political challenge blow over, USD/JPY will relief rally back to the 114 handle and no doubt the S&P500 and DOW rally back to record highs.
- Gold entered the 1,260 level today, an area which saw plenty of resistance between February and April. To break through this level, further news from Washington will be required. For now, markets are taking a breather anticipating the next Tweet, Wall St Journal Headline etc.
- NZD/USD has reversed almost all last Thursday’s 120 pip sell off after the RBNZ meeting. AUD/NZD longs have been rewarded, particularly after a break of the 1.075 resistance level.
- Coming into tonight’s European and US session, traders advised to keep an eye on headlines out of Washington and any left filed comments from ECB’s Draghi’s speech at the University of Tel Aviv at 3:00am Sydney time.
Today’s Economic calendar (AEST)
- 6:30pm UK Retail Sales
- 10:30pm US Unemployment Claims
- 3:00am ECB President Draghi Speaks
