AUD/USD: watch resistance at 0.7120/30 – Westpac

By FXStreet FXStreet (Guatemala) – Analysts at Westpac Banking Corporation explained that the 271k jump in US payrolls was 21k higher than even the most bullish forecast, producing steep rises in US yields and USD.

Key Quotes:

“Commodities fell but equities were resilient. “

“AUD weakened further on soft China trade data released on Sunday.”

“Today’s calendar is low key as usual after the US jobs data though we will hear from Fed dove Rosengren.”

“AUD/USD fell from 0.7150 to 0.7043 in NY trade Friday after the jobs data and continued to fall earlyMonday to 0.7025. The latter appears to be a reaction to Sunday’s China trade data, which showed a larger than expected fall in both exports and imports in October. On this theme, the spot iron ore price fell another -1% to $48.21/tonne, a low since 8 July.”

“The US employment report should be a game-changer for AUD/USD, knocking its multi-day trading range from say 0.70-0.73 to 0.69-0.72. At least to start the week, 0.7120/30 should cap rallies.”
For more information, read our latest forex news. …read more

Source:: FX Street