AUDUSD Approaches 65c Following US Payrolls, Trade Coming Up

AUDUSD fell sharply following the significantly higher-than-expected US payrolls data on Friday. The pair was trending higher before the release and reached 0.6610 but then fell to a low of 0.6502. Despite the 0.9% drop, Aussie was one of the mid-range G10 performers, outperforming the kiwi and yen, as equity markets rallied. AUDUSD is currently around 0.6514. The USD index rose 0.6%.

• Friday’s payrolls-driven move saw AUDUSD break below initial support of 0.6508, February 1 low, and approach 0.6500, a Fibonacci retracement. A break of this would strengthen the bearish theme. Initial resistance is at 0.6621, 50-day EMA.
• AUDNZD rose 0.3% to 1.0734 and AUDJPY +0.4% to 96.62. Aussie was slightly lower against the euro and the pound at 0.6040 and 0.5155 respectively.
• Equity markets were generally stronger with the S&P up 1.1% and the Euro stoxx +0.3% but FTSE down 0.1%. Oil prices were lower with WTI down 1.9% to $72.41/bbl. LME metal prices fell 0.6% on Friday to be down 1.9% on the week. Iron ore was lower at around $127/t.
• The focus of the week will be Tuesday’s RBA announcement but there are a number of data releases today too including final January Judo Bank PMIs, January MI inflation gauge & ANZ job ads and December trade.