10 Apr 2014
AUD/USD: Market keeps screaming to buy
FXStreet (Barcelona) - Another sign of the ebullient bullish sentiment towards the Australian Dollar was given today after the publication of what at first sight appears to be an upbeat headline jobs number, at 18.1k vs 5k expected; however, in closer examination, its a mixed bag result.
Despite the 18.1k jobs added, more than 20k full-time jobs were lost and the participation rate also decreased, a sign of discouragement by the market force, which also helps to apply downward pressure on the jobless rate.
Even if there were negative inputs, the AUD/USD surged over 50 pips to 0.9440 with no signs of any pullback, as clean a rise as it gets... which is a communication that the AUD continues to display moves out of proportion on mix/positive data, while being bought at any possible shallow dip. When these factors are manifested, fighting the dominant trend is asking for trouble.
Despite the 18.1k jobs added, more than 20k full-time jobs were lost and the participation rate also decreased, a sign of discouragement by the market force, which also helps to apply downward pressure on the jobless rate.
Even if there were negative inputs, the AUD/USD surged over 50 pips to 0.9440 with no signs of any pullback, as clean a rise as it gets... which is a communication that the AUD continues to display moves out of proportion on mix/positive data, while being bought at any possible shallow dip. When these factors are manifested, fighting the dominant trend is asking for trouble.