Aussie sitting on crucial support level before announcements

ForexNewsNow | Published on November 10, 2010 at 10:38 am

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aus usd eur realtime forex trading newsNEW YORK (Forex News Now) – The Australian dollar is currently sitting at significant support as FX traders wait for two announcements from Australia this evening to determine the next move for the currency.

On tap for this evening is the Aussie employment numbers, which will include not only the employment change, but the unemployment rate as well. The expected change should be for an addition of 20,200 jobs, while the unemployment rate is expected to print a number of 5%.

FX traders will also see the Melbourne Institute Inflation rate announcement, which although a minor announcement, gives a key look for FX traders into the inflation expectation for Australia.

Looking to the charts, it is likely that FX traders will take a breather from the pair until we see these announcements at 12:30 am GMT. It should be noted that the recent move above parity likely will have many trader wanting to get involved, and the chart shows significant support likely to be found at that level.

A minor dip below the parity level was seen in early morning American trading, but FX traders rejected the push downwards, and have begun to buy the Aussie since then. This pair has been following the recent move in gold lately, and it is likely that it will continue into the near future to do so. The jobs number will be important as well, as inflation expectations.

If the numbers disappoint, this could trigger a temporary sell off in the pair, but until the gold markets calm down, any pullback has to be considered as w buying opportunity.

The announcement could produce fireworks this evening, but is more likely to be just a short term move, as FX traders around the world focus on larger issues like the Quantitative Easing coming out of America, and the recent run up in commodities, gold included.

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