Australian Employment Change, which is released monthly, provides a snapshot of the health of the Australian labor market. A reading which is higher than the market forecast is bullish for the Australian dollar.
Here are the details and 5 possible outcomes for AUD/USD.
Published on Thursday at 00:30 GMT.
Indicator Background
Job creation is one of the most important leading indicators of overall economic activity. Thus, the release of Employment Change is a market-mover which can affect the movement of AUD/USD.
Employment Change has posted two straight declines, well below expectations. Much better news is expected in October, with an estimate of 20.3 thousand. Will the indicator match or beat this rosy prediction?
Sentiment and Levels
The US dollar has posted broad gains after the Trump shocker and the momentum could continue. As well, the likelihood of a Fed hike in December is high, which is bullish for the greenback. So, the overall sentiment is bearish on AUD/USD towards this release.
Technical levels from top to bottom: 0.7835, 0.7691, 0.7597, 0.7513, 0.7427 and 0.7334
5 Scenarios
- Within expectations: 17.0K to 24.0K: In this scenario, AUD/USD could show some slight fluctuation, but it is likely to remain within range, without breaking any levels.
- Above expectations: 24.1K to 28.0K: A stronger reading than expected could push the pair above one resistance level.
- Well above expectations: Above 28.0K: In this scenario, AUD/USD could break above two or more resistance lines.
- Below expectations: 13.0K to 16.9K: A lower than expected reading could pull the pair downwards, with one support level at risk.
- Well below expectations: Below 13.0K: A soft reading will likely hurt confidence in the Australian economy, and AUD/USD could break below two or more support levels.
For more on the Aussie, see the AUD/USD forecast.
Share
