The U.K. is printing its labor market numbers today.
Can GBP/AUD provide a legit trading opportunity?
Before I show y’all a potential setup, take a look at the top market themes in the last couple of hours:
- OPEC cuts forecast for 2021 growth in oil demand
- New Zealand consumer confidence up 10.9 points to 106 in December
- Reserve Bank of Australia sees lowering unemployment as national priority
- PBoC injects record 950 bln yuan of medium-term funds after bond defaults
- China’s recovery gathers pace, setting up strong growth for 2021
- Australia says it will pursue all avenues on reports of China coal restrictions
- Asian stocks dip as investors curb vaccine enthusiasm
Upcoming Potential Catalysts on the Economic Calendar:
- U.K.’s labor market numbers at 7:00 am GMT
- Switzerland’s PPI at 7:30 am GMT
- Canada’s housing starts at 1:15 pm GMT
- Canada’s manufacturing sales at 1:30 pm GMT
- U.S. NY manufacturing index at 1:30 pm GMT
What to Watch: GBP/AUD
Optimism over extended Brexit negotiations has boosted the pound during the U.S. session.
Meanwhile, China’s upbeat data dump earlier today was shrugged off in favor of Aussie bears pricing in Australia’s escalating trade tensions with China.
But that’s all in the past. The U.K. is set to print its labor market numbers and, the word around is that we could see higher jobless claimants even as average earnings tick higher.If the economic release brings more bulls to the pound’s yard, then we could see GBP/AUD bust through the 1.7750 minor psychological handle and head for the 1.7900 inflection point.
If traders get over the pro-pound and anti-Aussie themes, however, then pound bears can complete a double top-ish pattern around a 50% Fib retracement and 100 SMA on the 1-hour time frame.