Article Highlights

  • Australia’s jobless rate up from 6.0% to 12-year high of 6.4%
  • Australian employment change down by 0.3K vs. estimated 13.5K gain
  • Australia’s AIG construction index up from 51.8 to 52.6
  • BOE and ECB interest rate decisions coming up
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What a wipeout for the Aussie! AUD pairs caught a fresh wave of selling in the past few hours after Australia printed a dismal jobs report. Instead of showing the estimated 13.5K gain in hiring for July, the employment change showed a 0.3K drop in employment, and pushed the jobless rate up from 6.0% to its 12-year high of 6.4%.

AUD/USD slumped from a high of .9359 to a low of .9263 as of this writing while AUD/JPY tumbled 15 pips below the 95.00 major psychological support. EUR/AUD popped up to a high of 1.4448 from the 1.4300 levels while AUD/NZD is edging close to the 1.0950 minor psychological level. Not even the improvement in Australia’s AIG construction index from 51.8 to 52.6 was enough to give the currency any support, as talks of an RBA rate cut resurfaced.

Switzerland will be releasing its SECO consumer climate report and foreign currency reserves data in today’s London trading session while the euro zone will release the German industrial production data and French trade balance.

The bigger market movers in the next few hours might be the ECB and BOE interest rate decisions, both of which are expected to show a hint of dovishness. Do keep your eyes and ears peeled for the accompanying statements as these could dictate the longer-term direction for the euro and the pound. Good luck!

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