- Fears of the global recession put the AUD/USD pair under pressure.
- Comments from RBA’s Debelle, July month jobs data, will be in the spotlight.
- Trade/political news will also entertain market players.
Having become the biggest losers in G10 fraternity by the end of Wednesday, AUD/USD seesaws near 0.6750 during initial hours of Asian morning on Thursday.
China’s disappointing Industrial Production and Retail Sales countered the Aussie Wage Price Index and weighed on the macro risk sentiment. Also favoring the bears was the dragon nation’s lack of happiness with the US measures on delaying the trade tariffs on some of the goods and more than 10-week old protests in Hong Kong.
With this, the 10-year and two-year Treasury yields on the US note inverted for the first time since 2007 and triggered global recession fears, pushing traders off from riskier assets like the Australian Dollar (AUD) and equities.
Investors are now looking forward from the speech by the Reserve Bank of Australia’s (RBA) Assistant Governor (Risk Management Committee) Guy Debelle ahead of July month Employment Change and Unemployment Rate data.
Forecasts suggest an improvement in Employment Change to 14.0K from 0.5K prior with no change expected in Unemployment Rate figure of 5.2%. “Following zero employment growth in June, we expect a modest increase of 10k in July. However, if the participation rate stays around its record highs, this could see the unemployment rate rise to 5.3%,” says ANZ.
While early job market indicators haven’t been positive from Australia, any upside surprises will be welcomed with great zeal to recover recent losses.
Technical Analysis
Prices need to provide a sustained break below 0.6730 in order to lure sellers targeting 0.6700 and the latest low surrounding 0.6677. On the other hand, 0.6822 and 0.6831 seem nearby upside resistances to watch during the quote’s increase.
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