The Market in Brief:
US NonFarm Payrolls
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has been in sold off on the back of the Chinese equity market / currency crisis and thoughts the RBA
February meeting might be a close call with the central bank potentially wanting to preempt the inevitable headwinds. The price has taken out the December lows and opened up the possibility for a breakdown to the post Black Monday crisis downtrend and lows made in early September at 0.69 cents.
Perhaps more importantly; non farm payrolls will be released in the US tonight and could be the straw that breaks the bull’s back if the report is strong, overriding the dovishness in the FOMC minutes. Conversely, it could be the Aussie’s saving grace with a headline number significantly less than 200k. The data really is so unpredictable that the suggested best course of action would be to place a market order to be executed at your set target rate.
Technically, we are in a bearish trend with little in the way of support below until 0.6900 cents. However the lower Bollinger Band is extended whilst both the Stochastic and Relative Strength Indicators are recovering from oversold levels – all suggesting a good level to buy A$ now and potentially better levels to sell A$ in the very short term.
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Corporate & HNW Client Manager