Thursday September 9, 2010 - 15:14:17 GMT
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Forex Hound - www.forexhound.com
U.S. Equities and Better Jobs Data Supporting Aussie Dollar
Better than expected U.S. Weekly Initial Claims is helping
equity markets this morning, driving up demand for higher risk assets. This
coupled with the news that the Australian jobs market rose 30,900 for the sixth
consecutive month is setting a bullish tone for the AUD USD.
Todayâ€™s strong Australian jobs data shows that the economy
is still strong compared to the rest of the world. Demand for jobs may keep the
upward pressure on wages which could lead to a further tightening of monetary
policy by the Reserve Bank of Australia.
Technically, the AUD USD reaffirmed its uptrend by taking
out the last swing top at .9221. The first move through this level was probably
stops which means fresh buyers may try to buy a retest of this level, hence the
phrase, â€śold tops become new bottomsâ€ť.
If upside momentum continues then look for this market to
try to chew through previous tops at .9323, .9337, .9364 and .9387.
Fundamentally, the Australian jobs data should be enough to
underpin the Aussie Dollar, but traders should be aware that a failure to
follow-through to the upside in the U.S. equity markets could put a lid
on gains today.
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