The A$ remains under pressure in Wednesday’s session but manages to hold 20Dsma. Today on Asia session, the cross extend the pressure across the board. The pair AUDSUD is trading at 0.76 on Tokyo session.

The recent dollar strength and Wednesday’s strong economic events from the US lifts US bond yields. Besides, oil prices rally minimises the A$ fall.

After Australia August trade deficit releases, the cross extends the losses.

  • The balance on goods and services was a deficit of $2,239m in August 2016, an increase of $8m on the deficit in July 2016.
  • The balance on goods and services was a deficit of $2,010m in August 2016, a decrease of $111m (5%) on the deficit in July 2016.

Preview:

Markets participants focus on today’s unemployment claims and Friday’s NFP data. September non-farm payroll data is the key risk event.

FRIDAY-

  • NFP: forecast 171k vs 151k
  • Unemployment rate 4.9% vs 4.9%

Ahead of tomorrow’s NFP, Thursday offers usually a quiet day.

The cross has support finds between 0.76-0.7570 levels. A break below these, 0.7540 and 0.7500 exists.

Alternatively, resistance seems at 0.7650, 0.77 and 0.7760