The Fed is ready to start tapering in November. Since the markets were expecting this and it wasn’t a surprise, the USD slumped allowing risk-on currencies and gold to rally up.
Any prospects for the AUD?
What will happen?
Australian jobs data is published on May 20, at 04:30 GMT+3.
In December and January, the labor market in Australia was matching the forecasts almost up to a decimal. Starting from February, actual figures started exceeding the market expectations manifold. That was a solid indication that there is a steady trend for recovery in the Australian economy. That’s why the forecasts for the coming data are optimistic.
How to trade the jobs data?
The expected Australian employment change is 80K. That means most observers believe that the country’s labor market will have added 80K jobs in April – which is almost exactly as the March figure of 70.7K. If April’s employment change will be higher than that, it will be good news for the Australian economy that may push the AUD. Otherwise, disappointed investors and traders may dump the AUD and make it lose value.
- If the actual jobs data exceeds forecasts, the AUD may rise;
- Otherwise, it may lose value.
Instruments to trade: AUD/USD, AUD/CAD, AUD/CHF, AUD/JPY
Australia will release employment change and an unemployment rate on Thursday, October 14, at 03:30 MT (GMT+3).
The next week is going to be interesting for traders. The US, UK, and Canada will reveal the inflation data. Australia will show the labor numbers, while New Zealand – GDP growth.
Last week was full of surprises! Stock indices have shown significant growth…
The US dollar is heading to close the seventh day in the red as it remains under selling pressure. The US data at 15:30 GMT+3 (jobless claims and Philly Fed Manufacturing Index) may support the greenback if it's strong.
Canada will publish the Retail Sales and Core Retail Sales on October 22, at 15:30 MT time (GMT+3).