After quite a volatile Thursday, the overnight trade was calm and almost uneventful. The Retail Sales data set the Aussie up: the sales did not grow at all in September after having fallen by 0.6% in August.
AUD/USD slid below the 0.77 area and touched the lows at 0.7669. This was a bearish sign which may lead to the consolidation in the current range 0.7670/40 at best.
The last risk event for this week was the US jobs and wages data release. It is worth mentioning that this release used to be a market mover, but it has not been that important lately because it is obvious now that the problem is not the labour market, but the inflation. In October nonfarm payroll employment rose by 261,000, but the unemployment rate fell to the lowest level since 2001 at 4.1%. Even these dismal figures could not save the Aussie.
We think that the NFP data will hardly influence the Fed’s intentions. This will support the US dollar, and the next bearish target for the pair is the area of August lows at 0.7420.
AUD/USD slid below the 0.77 area and touched the lows at 0.7669. This was a bearish sign which may lead to the consolidation in the current range 0.7670/40 at best.
The last risk event for this week was the US jobs and wages data release. It is worth mentioning that this release used to be a market mover, but it has not been that important lately because it is obvious now that the problem is not the labour market, but the inflation. In October nonfarm payroll employment rose by 261,000, but the unemployment rate fell to the lowest level since 2001 at 4.1%. Even these dismal figures could not save the Aussie.
We think that the NFP data will hardly influence the Fed’s intentions. This will support the US dollar, and the next bearish target for the pair is the area of August lows at 0.7420.