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5 Apr 2013
Forex: AUD/USD down ahead of US employment
FXstreet.com (Barcelona) - The greenback is holding the cards today, keeping the AUD/USD biased to the downside. After a test of the support at 1.0400 psychological level, the cross retraced its losses up to 1.0438 but failed to hold and got back to “red”. As of writing, the market is down at 1.0411 and awaits the US nonfarm payrolls report.
“The positive momentum in US labor market activity should be sustained in March, with the economy adding a further +195K jobs”, wrote TD Securities analysts. “While this will be a slowdown from the robust 236K pace in February, it is in line with the 6m trend”, they continued, adding that growth should be broadly-based, reflecting the improved tone in economic growth performance in Q1. “Notwithstanding this constructive view, and believe the recent initial claims/ADP report suggest downside in the coming months, risks are tilted to the downside reflecting the uncertainty on the impact from sequestration”, they concluded.
“The market has traded through the support line but continues to find good support at 1.0389/60 (the 55 and 200 day ma). In order to alleviate immediate upside pressure a break back below here is needed”, wrote Commerzbank analyst Karen Jones, pointing to resistance at 1.0495.
“The positive momentum in US labor market activity should be sustained in March, with the economy adding a further +195K jobs”, wrote TD Securities analysts. “While this will be a slowdown from the robust 236K pace in February, it is in line with the 6m trend”, they continued, adding that growth should be broadly-based, reflecting the improved tone in economic growth performance in Q1. “Notwithstanding this constructive view, and believe the recent initial claims/ADP report suggest downside in the coming months, risks are tilted to the downside reflecting the uncertainty on the impact from sequestration”, they concluded.
“The market has traded through the support line but continues to find good support at 1.0389/60 (the 55 and 200 day ma). In order to alleviate immediate upside pressure a break back below here is needed”, wrote Commerzbank analyst Karen Jones, pointing to resistance at 1.0495.