Better than expected U.S. Weekly Initial Claimsis helping equity markets this morning, driving up demand for higher riskassets.
Better than expected U.S. Weekly Initial Claims is helpingequity markets this morning, driving up demand for higher risk assets. Thiscoupled with the news that the Australian jobs market rose 30,900 for the sixthconsecutive month is setting a bullish tone for the AUD USD.
Today’s strong Australian jobs data shows that the economyis still strong compared to the rest of the world. Demand for jobs may keep theupward pressure on wages which could lead to a further tightening of monetarypolicy by the Reserve Bank of Australia.
Technically, the AUD USD reaffirmed its uptrend by takingout the last swing top at .9221. The first move through this level was probablystops which means fresh buyers may try to buy a retest of this level, hence thephrase, “old tops become new bottoms”.
If upside momentum continues then look for this market totry to chew through previous tops at .9323, .9337, .9364 and .9387.
Fundamentally, the Australian jobs data should be enough tounderpin the Aussie Dollar, but traders should be aware that a failure tofollow-through to the upside in the U.S. equity markets could put a lidon gains today.