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AUDJPY Supported on Australia’s Unemployment Drop

By 11/15/2017 No Comments

AUDJPY-Australia Unemployment Drops to four-and-a-half-year low: The AUD/JPY pair was supported at 85.50 after reports showed that Australia’s unemployment rate has fallen to a four-and-a-half-year low at 5.4%. However, only a disappointing 3,700 jobs were created last month.

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AUDJPY-Australia Unemployment Analysis

The last time Australia’s unemployment was this low was February 2013. Market participants were expecting the unemployment to remain unchanged at 5.5%. On the other hand, the typical forecast for job creation was 17,500.

The Good: Aside from the fall in the seasonally adjusted unemployment rate, was the addition of 24,300 full-time jobs, while 20,700 part-time jobs were lost. Reflecting the rise in full-time jobs, monthly hours worked rose 0.3%

The Bad:  If you look at the data carefully, you’d realize that the unemployment rate fell only because of the participation rate. Basically, the percentage of people looking for work dipped 0.1 of a percentage point to 65.1%.

Unemployment had been stuck between 5.5 and 6 per cent for the past two years, having fallen from a peak of 6.4 per cent in October 2014.

AUDJPY Technical Analysis

The AUDJPY pair broke below the daily Ichimoku cloud end of October. Since then, we’ve seen all three of the Ichimoku-based bearish confirmation which made us some pips in the past weeks. After reaching the key support, and 50% Fibonacci retracement level of 85.50 on Wednesday however, the pair may have found support.

AUDJPY-Australia Unemployment Technical Analysis

AUDJPY-Australia Unemployment Technical Analysis

 

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Coming Up on Economic Calendar

Thursday:  Next up is yet another set of data out of the UK and EU to add on to the volatile GBP and EUR markets.

UK Retail Sales is scheduled for 9:30 AM GMT.

Euro-Zone Consumer Price Index for 10 AM.

US weekly jobs report is out at 1:30 PM GMT. Later BOE’s Carney is scheduled to speak at 2 PM.

The NAHB Housing Market Index (NOV) is up next at 3 PM, And during the next day’s Asian session New Zealand’s Businesses Manufacturing PMI (OCT) will be out at 9:30 PM GMT.

Friday: At the end of a very busy week filled with economic data which has been shaking the markets, we have two more top-tier events today.

First up is ECB’s Mario Draghi who’s scheduled to Speak in Frankfurt at 8:30 AM GMT. His speech is titled “Europe into a New Era – How to Seize the Opportunities”. Market participants will be all ears waiting for him to drop subtle clues regarding future monetary policy, so we could see more volatility in the EUR crosses during after his speech.

Up next is Canada’s Consumer Price Index  (OCT) at 1:30 PM GMT. This is the key gauge for inflation in Canada. On a YoY basis, market participants expect Canada’s inflation to have dropped to 1.4% from the previous reading of 1.6% in October.

Last but not least, we have the weekly Baker Hughes U.S. Rig Count at 6 PM to end the trading week.

 

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