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AUD/USD breaks to the 0.74 handle

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Mar 4, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

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    AUD/USD has been better bid ever since it broke through the 200 dma and has now penetrated the previous double top pattern on the daily sticks on the back of the US jobs report.

    While the headline was decent, with the US that created 242k jobs in February with a consensus for around 195k, and the overall report was ok, the less favorable news was in the hours worked and earnings.

    Optics in the nonfarm payrolls - BBH

    "The average weekly hours fell back to 34.4 from 34.6. This is a negative for output. Hourly earnings were expected to have risen by 0.2%, but instead fell by 0.1%. It is the first decline in more than a year," explained analysts at Brown Brothers Harriman. "This dragged the year-over-year pace down to 2.2% from 2.5%. Manufacturing lost 16k jobs. The consensus expected only a 1k loss, while the January gain was trimmed to 23k from 29k. "

    AUD/USD levels

    AUD/USD has eroded the 0.7331 8 month resistance line and Karen Jones, chief analyst at Commerzbank explained that there is scope to the 55 week moving average at 0.7392, but she said to look for the market to struggle here and fail, we note the base of the weekly cloud at 0.7378 which reinforces resistance here. "Nearby support lies at 0.7255, the 200 day ma. The short-term uptrend at 0.7140 maintains the bid tone for the market."
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