Aussie Drops on Sluggish Employment Data, Greenback Weaker Across the Board | IFCM India
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Aussie Drops on Sluggish Employment Data, Greenback Weaker Across the Board - 12.9.2013

The Australian dollar weakened after the Employment data surprisingly decreased in August by 10.8K, while it was expected to increase by 10.2K, the July figure was revised downward from -10.2K to -11.4K. The Unemployment rate increased to 5.8% in August up from 5.7% in July in line with expectations. As a result the AUDUSD declined from almost 3-month high at 0.9354 down to a previous resistance level at 0.9229, ahead of 38.2% Fibonacci retracement of 0.8890 to 0.9354, at 0.9180. The Reserve Bank of Australia may hold its dovish attitude as the employment sector worsens and a September currency exchange rate moving against Glenn Stevens hopes that a falling exchange rate could support Australian economy.


Aussie Drops on Sluggish Employment Data, Greenback Weaker Across the Board


Looking at the greenback against the Japanese Yen the bias is reversing to bearish amid prices dropped below key level at 100 and moved towards support at 99.10. Asian stocks are mixed with NIKKEI 225 falling by 0.26%and Shanghai composite rising by 0.61% inducing traders to collect profits after USDJPY rally. The AUDJPY retraced nicely to support at 91.74 and perhaps in the intraweek trading could move towards the double bottom neckline where the 50.0% Fibonacci retracement of the 86.51 to 93.55 is also located, at 90.11.


Aussie Drops on Sluggish Employment Data, Greenback Weaker Across the Board


Elsewhere, the greenback was smashed across the board against most of its major counterparties as indicated by US dollar index breaching 81.68 yesterday and falling earlier today to 81.37. The EURUSD advanced to resistance at 1.3321 on greenback’s weakness, while as of typing monthly French CPI was in line with projections at 0.5% in August, up from -0.3% in July and ahead on Industrial Production for July release expected to drop by 0.1%. The British pound underpinned by stronger employment data surged to a fresh 7-month high at 1.5830 and maintained its ground near that peak before Mark Carney testify in UK Parliament. The USDCAD dipped for a fourth consecutive day and this morning found support at 1.0304, eliminating almost all gains of the August rally.
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