AUDUSD looks vulnerable if NFPs pull forward Fed bets
- The pair is trading at 0.7542 at 09:40 GMT this morning, with the Australian Dollar trading 0.09% lower against US Dollar from the New York close.
- This morning, the pair traded at a high of 0.7561 and a low of 0.7532. The Australian Dollar traded 0.45% higher against the US Dollar in the New York session yesterday, with
- the pair closing the session at 0.7549. The pair is expected to its find support at 0.7509 and its first resistance at 0.7568.
The AUDUSD is trading sideways, around 0.7550
The AUD/USD is trading sideways, around 0.7550 at the time of writing, after the pair managed to find support at the 0.75 handle.
Looking ahead, Fed rate hike expectations are at center stage as we approach the August NFPs, with theAussie looking vulnerable if the report pulls forward rate hike bets.
August US Non-farm Payrolls hits the wires 12:30 GMT. Expectations are for a 180K jobs increase, down from the 255K prior number.
The NFP report is always in focus, and today’s numbers are no different as Yellen said last week that “the case for an increase in the federal funds rate has strengthened”, which pulled forward Fed rate hike bets and gave the US Dollar a boost.
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This makes for a potentially huge event today, with the market looking to confirm or contradict the shift in the projected rates timeline, potentially implying a binary response on a big beat or miss to expectations in the headline figure.
With that said, opportunity might lie in the nuances.
A slight miss to the headline figure, that neither confirms nor contradicts the build-up in Fed bets, might see a knee-jerk US Dollar sell reaction.