Friday’s Non-farm payroll fallout and possibly a little bit of post-election bounce has seen the Australian dollar surge in the first few minutes of trade this morning.
It opened the week at 92.12 US cents before easing in the last hour about 20 pips shy of that mark. This morning bounce was definitely helped by Sunday’s trade balance data from China which showed exports rising ahead of imports 7.2% compared to 7%. The Gold price has followed a similar pattern hitting 1394 US an ounce and easing also about $7 following. The market will still be grappling with the very disappointing drop in the US labour force participation rate on Friday as the actual unemployment rate fell to 7.3% as we lead the FOMC meeting starting September 17th, with the tapering debate far from over.
Currency traders will get no rest today after last week’s volatile 5 days we have Japanese Current account and final quarterly GDP data. The US dollar had a considerable gap up versus the Yen this morning after closing Friday at 99.11 Yen and opened at 99.69 yen, it has since continued to firm across the last two hours.
The local session is likely to be a roller-coaster just before lunch with ANZ Job Advertisements and home loans data due for release and that is coupled with Chinese year on year CPI data. The market is likely to be a bit quiet leading into these releases but the fireworks should follow after.
Joel Murphy
www.pepperstone.com
Joel Murphy is a currency analyst and market commentator for Forex Broker Pepperstone and he regularly features on Sky Business News Australia. He has worked in both retail and institutional Forex for last 8 years and completed a Bachelor of Commerce and a Bachelor of Arts from Monash University
