AUD/USD: nonfarm payrolls the straw to break the bull’s back?

By FXStreet FXStreet (Guatemala) – AUD/USD has been in supply on the back of the Chinese crisis and the February meeting might be a close call with the RBA potentially wanting to preempt the inevitable headwinds. The price has taken out the Dec lows and moved in on the 0.7000 level overnight. This has opened up the possibility for a breakdown to the post Black Monday crisis downtrend and lows made in early September at 0.6907.

The catalyst yesterday was the Chinese stock market , devaluation of the Yuan yet again and poor building approvals data in the Australian economy. Today, the fix will be monitored yet again, as will stock market and so to will we be keeping an ear to the ground in respect of the Chinese authorities subsequent course of action to try and get a grip on and get stability back in the markets. Before all that, the Aussie retail sales will also be an event to watch while the Australian economy’s performance will now be strongly scrutinised ahead of the RBA meetings throughout Q1/H1.

Also, nonfarm payrolls will up in the US tonight and could be the straw that breaks the bull’s back …read more

Source:: FX Street