The Aussie pair has turned sideways after facing minor resistance around 0.6850 in the late New York session. The pair is likely to extend its recovery and may surpass Thursday’s high at 0.6848 as investors are expecting downbeat US Nonfarm Payrolls data.
As per the market sentiment, the US economy has added 270k jobs in the labor market, considerably lower than the former release of 390k. Together, the Unemployment Rate may remain stable at 3.6%. It is worth noting that the generation of lower employment opportunities by the US economy doesn’t resemble a slowdown. The labor market has reached full employment levels and therefore, less room is available for the creation of more job opportunities.
Also, investors’ focus will remain on the Average Hourly Earnings, which will remain flat at 5.2%. The inflation rate in the US economy has jumped to 8.6% while the growth in the wage prices is not lucrative. This may lessen the ‘paychecks’ of the households and eventually their aggregate demand quantity-wise for durable goods.
Warning:
Trading on CFDs involves a high level of risk, including full loss of your trading funds. Before proceeding to trade, you must understand all risks involved and acknowledge your trading limits, bearing in mind the level of awareness in the financial markets, trading experience, economic capabilities and other aspects.
Disclaimer:
Market Trends, Charts, Trading Ideas or other information provided by BKFX (Pty) Ltd and/or third parties are not intended as an investment advice and/or recommendation. The information provided is not presented as suitable or based on your specific need. You are responsible for your own investment decisions and you should not trade with money you cannot afford to lose. Any views or opinions presented in this Article are solely those of the author and do not necessarily represent those of the Company, unless otherwise specifically stated. The Company may provide the general commentary which is not intended as an investment advice and must not be construed as such. Seek advice from a separate financial advisor if an investment advice is needed. The Company assumes no liability for errors, inaccuracies or omissions, inaccuracies or incompleteness of information, texts, graphics, links or other items contained within this article/material.