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Aussie Dollar Gets
Post-Election Bounce
The Aussie Dollar has been building momentum versus the US Dollar in recent sessions. The strong showing in the ADP job report may have gotten traders a bit too upbeat leading up to the Non-farm Payroll report. When Friday’s number missed and prior months’ reports showed downward revisions, the Aussie got a boost versus the greenback. It will be interesting to see how the FOMC reacts to the softer employment data, and whether the central bank softens their tone a bit on the Bond buyback tapering.
Fundamentals
Australian Dollar futures hit a six-week high after a report showed strong Chinese export data. The government report showed that Chinese exports rose by 7.2% in the month of August, versus the same period a year ago. China is Australia’s largest trading partner. Conservatives swept the election, which can likely be seen as business-friendly. The Australian public had become disenfranchised with the Labor party and infighting, so the conservative victory may have the public feeling optimistic. The Aussie also got a boost from Friday’s US Non-farm Payroll report, which showed the US economy creating 169,000 jobs in the month of August. This was short of the 175,000 estimate. The report also featured downward revisions of June and July jobs numbers, which cumulatively slashed 74,000 jobs from these months’ reports.
Turning to the chart, we see the September Australian Dollar rallying to close in on resistance at the 0.9250 level. The Aussie could be showing a double-bottom, which could be a sign that the market is ready to reverse. The closes above the 20- and 50-day moving averages could be a sign that a near-term low is in place. The 20-day average looks as though it is ready to cross through the 50-day average on the upside, which can be seen as bullish. The momentum indicator is showing negative divergence from both price and RSI, which gives some traders reason to be cautious.
The Aussie Dollar has been building momentum versus the US Dollar in recent sessions. The strong showing in the ADP job report may have gotten traders a bit too upbeat leading up to the Non-farm Payroll report. When Friday’s number missed and prior months’ reports showed downward revisions, the Aussie got a boost versus the greenback. It will be interesting to see how the FOMC reacts to the softer employment data, and whether the central bank softens their tone a bit on the Bond buyback tapering.
Fundamentals
Australian Dollar futures hit a six-week high after a report showed strong Chinese export data. The government report showed that Chinese exports rose by 7.2% in the month of August, versus the same period a year ago. China is Australia’s largest trading partner. Conservatives swept the election, which can likely be seen as business-friendly. The Australian public had become disenfranchised with the Labor party and infighting, so the conservative victory may have the public feeling optimistic. The Aussie also got a boost from Friday’s US Non-farm Payroll report, which showed the US economy creating 169,000 jobs in the month of August. This was short of the 175,000 estimate. The report also featured downward revisions of June and July jobs numbers, which cumulatively slashed 74,000 jobs from these months’ reports.
Turning to the chart, we see the September Australian Dollar rallying to close in on resistance at the 0.9250 level. The Aussie could be showing a double-bottom, which could be a sign that the market is ready to reverse. The closes above the 20- and 50-day moving averages could be a sign that a near-term low is in place. The 20-day average looks as though it is ready to cross through the 50-day average on the upside, which can be seen as bullish. The momentum indicator is showing negative divergence from both price and RSI, which gives some traders reason to be cautious.
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