13th August 2020 - AUD/USD: Recovery moves eye 0.7200 ahead of Aussie jobs report


Good Morning,

Market Headlines

- US CPI beats expectations in July with the headline CPI up 0.6% m/m – twice the rise expected.

- US benchmarks ended higher on Wednesday, buoyed by the US inflation data, advances in the Big-5 techs and despite the deadlock in Congress.

- Commodities: Crude +2.3%, Copper +0.7%, Wheat -0.8%, Sugar +0.8%, Iron ore +0.1%, Gold $1916.

Currencies

AUD/USD: 0.7121 – 0.7176

EUR/USD: 1.1725 – 1.1817

GBP/USD: 1.3006 – 1.3066

USD/JPY: 106.69 – 107.01

USD/CAD: 1.3230 – 1.3330

NZD/USD: 0.6537 – 0.6600

AUD/JPY: 75.99 – 76.71

AUD/NZD: 1.0869 – 1.0906

AUD Thoughts

- AUD/USD, recovery moves eye 0.7200 ahead of Aussie jobs report

- Market sentiment improved on upbeat US data, no major negatives from US-China.

- S&P500 refreshed record tops, Gold also bounced from $1,860.

- US Senators struggle to renegotiate the stimulus, Australian employment for July will be the key.

Markets will keep eyes on July month's employment data from Australia. Forecasts suggest Employment Change drop from 210.8K to 40K with a rise in unemployment change to 7.8% against 7.4% prior. It should also be noted that the recently grim words from US Treasury Secretary Steve Mnuchin probes the bulls and makes it important for traders to keep a watch on risk catalysts as well.

AUD bounce off 21-day EMA enables it to attack 0.7200 immediate resistance ahead of the monthly top near 0.7245. On the downside, 0.7065/60 area comprising July 24 low and June 10 high can offer an extra support past-0.7115 level including the short-term EMA.

Event Risk Data Today

AU – July employment

US – Weekly jobless claims

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