Aussie jobs data preview – what to expect in AUD/USD

By FXStreet FXStreet (Guatemala) – AUD/USD has been awaiting the key jobs data coming up today as the main catalyst this week after the Chinese data dump and previous Nonfarm Payrolls of last week that set the scene for the downside in the major commodity currency. AUD/USD has been eyeing a break of the 0.7000 level but so far has lacked momentum on offers towards the psychological support zone.

AUD/USD is caught between the Central Banks and commodity markets while the RBA remains on hold but is starting to move towards a dovish bias in light of head winds from China, lower commodity prices and a mixed domestic growth outlook. The jobs sector is a key component to the RBAs decision making amongst GDP, CPI and concerns for a housing bubble.

Sean Callow, analyst at Westpac explained that the RBA held the cash rate at 2.0% in November for the fifth straight month. “The downside surprise on Q3 CPI did not produce the rate cut a minority had expected but the RBA did say that “the outlook for inflation may afford scope for further easing of policy, should that be appropriate to lend support to demand.“ • Westpac expects rates to be …read more

Source:: FX Street