Here are a short wrap of the latest news and the tech analysis of EUR/USD, AUD/USD, and gold.
Hooray! It’s NFP day!
Instruments to trade: EUR/USD, USD/JPY, GBP/USD
The US NFP report will come out on January 8 at 15:30 MT time. Keep this time free, otherwise, you risk missing the crucial event for the whole Forex world that occurs only once in a month! Let us quickly remind you of what it is and how the market usually reacts. NFP or non-farm payrolls represent the change in the number of employed people during the previous month, excluding those who work in the farming industry. The more people are employed, the better the economic conditions are. In contrast, the fewer people are employed, the worse the economic conditions are. Easy! However, the market reaction depends on whether the actual NFP is better than the forecast or not. Elsewhere, it’s important to pay attention to two other indicators released at the same time with NFP: average hourly earnings m/m and the unemployment rate.
- If all the three indicators come out better than the forecasts, the USD will rise.
- If all the indicators are worse than the forecasts, the USD will drop.
- If NFP comes better, but earnings – worse, the USD will spike at first, but it will fall with the second wave.
The Australian economy has been on a steady recovery path, and now we have a very symbolic confirmation that S&P ASX 200 is about to cross 7000!
Jump in to know the latest market news and trade ideas for today!
The Reserve Bank of New Zealand will hold a meeting on Wednesday, April 14, at 05:00 MT.