Source: ForexYard
A worse than expected Australian jobs report caused the AUD to turn bearish during Asian trading last night, while crude oil gave up some of its recent gains following a lower than expected US Crude Oil Inventories figure yesterday.
The Australian dollar fell close to 70 pips against the USD during the overnight session to eventually trade as low as 1.0493. Currently, the AUD/USD appears stable at 1.0505. Against the JPY, the aussie lost more than 100 pips following the jobs report, while the EUR/AUD has gained more than 60 pips since last night.
After gaining well over $1 a barrel during afternoon trading yesterday, largely due to signs that demand for oil in the US has gone up, crude saw a minor downward correction last night. The commodity fell just over $0.40, eventually reaching as low as $93.78, before bouncing back to its current level of $94.00.
Main News for Today
US Building Permits- 13:30 GMT
• Forecasted to come in at 0.91M, slightly higher than last month
• Better than expected data today could boost riskier assets, including the EUR and GBP
US Unemployment Claims- 13:30 GMT
• Forecasted to come in at roughly the same level as last week
• A significantly higher than forecasted result today may lead to risk aversion which would boost the USD and JPY
US Philly Fed Manufacturing Index
• Forecasted to come in at 7.1, slightly below last month’s
• A better than expected figure may encourage risk taking, which would boost higher yielding assets like crude oil
Forex Market Analysis provided by ForexYard.
© 2006 by FxYard Ltd
Disclaimer: Trading Foreign Exchange carries a high level of risk and may not be suitable for all investors. There is a possibility that you could sustain a loss of all of your investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with Foreign Exchange trading.
