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Forex: Aussie defies gravity

The big stand out from last night was the Aussie which has spiked on the back of a much unexpected decline in unemployment. AUDUSD is now back in the mid 0.7700 area marking a two week high as the Australian economy created more than double the amount of jobs expected in March and February’s rise was revised upwards almost threefold. The Aussie has also benefitted from strength in commodities as crude prices have also spiked on the back of a drop in US production and oil stocks. A number of traders are becoming more bullish on oil now that it has broken to fresh highs for the year and risen as much as 35% since January and March lows. For now in AUDUSD seems to be firmly supported above the 0.7550 level. Despite a slowing China and depressed iron ore prices the Aussie remains reluctant to head lower for now.

Today the economic calendar is quite quiet again but the focus will be on US data in the form of housing starts, the weekly initial jobless claims and Phili Fed survey.

4.5/5(2)