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 rebounded in October, as the economy added 9.8 thousand jobs. However, this was well short of the forecast of 20.3 thousand. A strong reading is expected for November, with estimate of 17.6 thousand. Will the indicator match or beat this rosy prediction?
Sentiment and Levels
A decline in GDP indicated that the Australian economy finds itself in rough waters. With the Federal Reserve poised to raise rates on Wednesday, the greenback could make strong gains against the Aussie. 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: 14.0K to 22.0K: In this scenario, AUD/USD could show some slight fluctuation, but it is likely to remain within range, without breaking any levels.
- Above expectations: 22.1K to 26.0K: A stronger reading than expected could push the pair above one resistance level.
- Well above expectations: Above 26.0K: In this scenario, AUD/USD could break above two or more resistance lines.
- Below expectations: 10.0K to 13.9K: A lower than expected reading could pull the pair downwards, with one support level at risk.
- Well below expectations: Below 10.0K: 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.
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