Partner Center Find a Broker

Aussie traders are in for a busy week as Australia prints its labor market reports, RBA’s Lowe takes center stage, and China releases a bunch of top-tier reports.

How can you trade these potential catalysts?

Here are some points you need to know about the events:

Labor market data ((Oct 16, 12:30 am GMT)

  • The unemployment rate unexpectedly fell from 7.5% to 6.8% – the lowest since April – as restrictions were lifted in most states
  • A net of 111,000 jobs was created (markets saw a 50K decline) and reflected a rise in both full-time (36,200) and part-time (74,800) hiring
  • AUD still fell during the Asian session as traders were busy pricing in the Fed not being aggressive with its stimulus as they had expected
  • Analysts see the unemployment rate climbing to 7.0%
  • Overall employment could see a net decline of 40,000 in September

China’s top-tier reports

  • China is one of Australia’s biggest trading partners, so anything that can affect China’s growth can usually move AUD’s trends
  • Trade data (Oct 13, Asian session) could show a wider surplus (from 58.9B to 60B) even as annual numbers show imports recovering faster than exports
  • Consumer prices (Oct 15, 1:30 am GMT) could slow down from 2.4% to 2.0% from a year ago in September
  • Producer prices (Oct 15, 1:30 am GMT) seen at -1.8% after a -2.0% print in August

Market risk appetite

  • Reserve Bank of Australia (RBA) Governor Lowe will speak in an annual conference on Oct 14, 9:45 pm GMT where he is expected to share the central bank’s willingness to keep rate cut prospects on the table
  • Stimulus headlines in the U.S. will continue to affect overall risk sentiment and the demand for high-yielding currencies like AUD
  • Updates on the Brexit negotiations, eurozone’s second wave restrictions, and earnings reports in the U.S. can also influence AUD’s intraday trends

Technical snapshot

  • Stochastic is flagging AUD/JPY, AUD/USD, and AUD/NZD’s “overbought” conditions on the daily time frame
AUD Forex Pairs Stochastic from MarketMilk
AUD Forex Pairs Stochastic from MarketMilk
  • SMAs show the Aussie’s bullish trends across the board
  • AUD is seeing low key bearish spots against CHF, GBP, CAD, and NZD on the daily time frame
AUD Forex Pairs SMAs from MarketMilk
AUD Forex Pairs SMAs from MarketMilk
  • The Aussie was most volatile against the safe havens and the pound in the last seven days
AUD Forex Pairs Volatility from MarketMilk
AUD Forex Pairs Volatility from MarketMilk

Missed last week’s price action? Read AUD’s price recap for October 5 – 9!