Today, on August 7th, during the Asian trading session, investors were waiting for optimistic figures coming from the Australian labor market in order to keep on purchasing the Australian Dollar (also known as the Aussie) and to get the yield from the spread between the interest rates set by the RBA and the Fed.
The report failed to come up to market expectations. Economists had predicted a 13 500 increase in the amount of new jobs in Australia. In particular, the Australian rate of unemployment actually increased up to the 12-month high to hit 6,4% in July against the expected rate of 6,1%.
After the weak report disappointing the market of AUDUSD, the traders triggered a sellout, thereby dropping the Aussie by 0,9% against its American counterpart. Still, economists assume that the unexpected growth in the unemployment rate is not a wakeup call. Still, they underline that the latest unemployment figures mean that it is still to early for the Reserve Bank of Australia to think about the toughening of its monetary policies.
With that, said, it is likely that the RBA is going to cut interest rates further down.
The forecast made by Goldman Sachs and implying interest rate cuts in September now looks more realistic.
Forex
According to the trading experts working for Masterforex-V Academy, the Australian Dollar is seeing serious decline after the weak reports from Australia. This let the US Dollar gain some value against the Aussie - over 80 points so far. Thereby, AUDUSD set another local high at 0,0258, which is confirmed by the H1 chart of AUDUSD.
If the price manages to break and consolidate below 0,9275, we are likely to see a futher downswing, which may turn the mid-tem bias to a bearish trend. A break below 0,9258 will give way to 0,9243 and 0,9202.
Alternatively, if the price goes up and overcomes 0,9275, we are likely to see a move up to 0,9357 and even 0,9389 ,especially if backed by some strong reports from Australia.
According to the Binary Options Department of Masterforex-V Academy, the experts recommend going short and buying put options on bullish reactions. The optimal lifetime of the option is 1,5 hours.
