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3 May 2013
Forex: AUD/USD off highs and back to 1.0250
FXstreet.com (Barcelona) - The AUD/USD is erasing its latest attempt of daily gains towards its highs around 1.0275 as the market gets ready for US nonfarm paryolls report that advises caution. The cross is currently just above 1.0250, easing from its highs once again after three other upside attempts being capped there throughout the day.
In Australia, the Producer Price Index rose 0.3% (QoQ) in Q1, beating 0.2% consensus, with year-on-year data rising from 1.0% to 1.6%, as expected: “A ’below seasonal’ outcome that indicates ongoing subdued pipeline inflation pressures. Meanwhile, the services PSI declined to 44.1 in April from 49.6, a four-month low. Both are second-tier data”, wrote TD Securities analysts, adding one more second tier data being China’s non-manufacturing PMI that eased to 54.5 in April from 55.6 in March, matching February’s level.
In regard to the US nonfarm payrolls, investors will be very serious about April data after a weak figure in March and this week’s disappointing ADP employment report. “Consensus forecasts at 145k drifted lower after the ADP report of 119k and our standing estimate of 162k looks admittedly toppish. Even if we are right, it would still represent a deceleration in job growth. The jobs number will be weaker than recent trends, even if odds favor a bounce higher in April”, wrote TD Securities analyst Alvin Pontoh, expecting the unemployment rate to remain unchanged at 7.6%, (7.57%) but the risk is tilted higher.
“The AUD/USD was weak yesterday but has thus far failed to break its support at 1.0221. Hourly resistances are at 1.0299 and 1.0329. Another support is at 1.0202 (11/03/2013 low)”, wrote MIG Bank analysts Bijoy Kar and Luc Luyet.
In Australia, the Producer Price Index rose 0.3% (QoQ) in Q1, beating 0.2% consensus, with year-on-year data rising from 1.0% to 1.6%, as expected: “A ’below seasonal’ outcome that indicates ongoing subdued pipeline inflation pressures. Meanwhile, the services PSI declined to 44.1 in April from 49.6, a four-month low. Both are second-tier data”, wrote TD Securities analysts, adding one more second tier data being China’s non-manufacturing PMI that eased to 54.5 in April from 55.6 in March, matching February’s level.
In regard to the US nonfarm payrolls, investors will be very serious about April data after a weak figure in March and this week’s disappointing ADP employment report. “Consensus forecasts at 145k drifted lower after the ADP report of 119k and our standing estimate of 162k looks admittedly toppish. Even if we are right, it would still represent a deceleration in job growth. The jobs number will be weaker than recent trends, even if odds favor a bounce higher in April”, wrote TD Securities analyst Alvin Pontoh, expecting the unemployment rate to remain unchanged at 7.6%, (7.57%) but the risk is tilted higher.
“The AUD/USD was weak yesterday but has thus far failed to break its support at 1.0221. Hourly resistances are at 1.0299 and 1.0329. Another support is at 1.0202 (11/03/2013 low)”, wrote MIG Bank analysts Bijoy Kar and Luc Luyet.