Aussie Hit as Unemployment Rises

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Aussie Hit as Unemployment Rises
Aussie Hit as Unemployment Rises

Aussie Hit as Unemployment Rises

The Australian dollar lost 130 points against the greenback on Thursday as the number of layoffs in the month of August exceeded 10,000, while the unemployment rate of Australia increased to 5.8% from the previously recorded figure of 5.7%.

The pair couldn’t break its resistance level of 0.9360 after which bears took it down to 0.9230, after which it gave a small proportion of bullish correction and closed near the 0.9264 level.

Provided it moves below yesterday’s low of 0.9230, then it would fall badly and may go on to test 0.9200, breaking of which could show 0.9170.

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Euro remained in range yesterday where it lost nearly 40 points in the European session after the release of industrial production data of the Eurozone where the industrial sector contracted by 1.5% in the month of August. Later on despite good unemployment claims data for the U.S., the euro gained against the greenback and is currently hovering at 1.3298 just before the start of the Asian session on Friday.

If the pair manages to break the 1.3270 support level, then its next targets would be to test 1.3255 and 1.3232, where buyers may try entering the market again. Provided that bears manage to drag the pair down to 1.3209 then heavy selling could be seen.

Gold to the Grave

Gold continues its bearish streak and kept falling on Thursday as well where it established itself as a strong bearish commodity at the moment, where it fell from 1362 down to 1322. The precious metal seems not be that precious now as it is strongly bearish in all its time-frame charts ranging from 5-minutes to daily chart and is moving below its 200-EMA, 100-EMA and 50-days EMA levels.

The key reasons behind this dovish behavior by investors on gold are the relieving of tensions between the U.S. and Syria where no military strike is being done or would not be done provided Syria gives up on its chemical weapons.

Secondly, the FED meeting is just around the corner where it is highly expected they would reduce the injection of money in the economy to a certain extent and that would eventually lead to the fall in the stock market and as well as gold, since the U.S dollar would be considered as a safe haven. It is all because the U.S. economy is getting better and the labor sector is improving substantially.

To contact the reporter of this story: Jonathan millet at john@forexminute.com