The AUD/USD hit a four year low last week after better-than-expected U.S. Non-Farm Payrolls data strengthened expectations that the Federal Reserve could
The AUD/USD hit a four year low last week after better-than-expected U.S. Non-Farm Payrolls data strengthened expectations that the Federal Reserve could begin hiking interest rates sooner rather than later.
Sellers took control of the market, following the release of the September jobs report which showed the U.S. economy added 248,000 new jobs versus pre-report estimates of 215,000. The unemployment rate also fell below 6.0%. The news drove up U.S. interest rates which made the U.S. Dollar a more attractive investment than the Australian Dollar.
The strength of the U.S. jobs data is expected to carry over into this week. Additionally, the Reserve Bank of Australia is set to meet on October 7. RBA Governor Glenn Stevens has made several attempts recently to publicly question the valuation of the Australian Dollar, putting a bearish spin on the currency.
The AUD/USD is expected to see more selling pressure this week if Stevens stands his ground. At the last RBA meeting, Stevens said, “The exchange rate remains above most estimates of its fundamental value, particularly given the declines in key commodity prices.” If the RBA continues down this road, look for further price deterioration.
High Impact Economic Events That Traders Should Be Aware Of This Coming Week
Currency Event Forecast Previous
Monday, October 6
There are on high impact economic events today.
Tuesday, October 7
AUD Cash Rate
AUD RBA Rate Statement
Wednesday, October 8
USD FOMC Meeting Minutes
Thursday, October 9
AUD Employment Change -29.6K 121K
AUD Unemployment Rate 6.2% 6.1%
USD Unemployment Claims 291K 287K
Friday, October 10
There are on high impact economic events today.
James is a Florida-based technical analyst, market researcher, educator and trader with 35+ years of experience. He is an expert in the area of patterns, price and time analysis as it applies to futures, Forex, and stocks.