Australia just released another stronger than expected jobs report.
Could this be enough to stimulate a double top break for GBPAUD?
Before we continue, yesterday’s watchlist from ICYMI reviewed the USDCAD trend channel ahead of the Canadian CPI release. Be sure to check if it’s still a valid trade!
And now for the headlines that have rocked the markets in recent trading sessions:
Fresh headlines and economic data:
The PBOC cut lending rates to boost credit supply and growth
Australia’s economy added 64.8k jobs in December versus 60k forecast, 366.1k previously
Australia’s unemployment rate improved to 4.2% from 4.6% versus 4.5% consensus
Australian MI inflation expectations fell to 4.4% from 4.8%
New Zealand PM says restrictions on community transmission of Omicron could be tightened again
UK RICS house price balance fell from 71% to 69%, as expected
API revealed crude stocks rose by 1.4 million barrels
ECB boss Lagarde: No reason for us to act like the Fed
German producer prices rose 5.0% versus a forecast 0.8% increase
Eurozone headline CPI final unchanged at 5.0%, core CPI at 2.6%
ECB monetary policy meeting accounts at 12:30 GMT
Canadian ADP Non-Farm Employment report at 13:30 GMT
Philadelphia Fed Manufacturing Index at 1:30 p.m. GMT
Initial US jobless claims at 13:30 GMT
US EIA crude stocks at 16:00 GMT
Something to see: GBP/AUD
Not much stands in the way of quality releases during the US session, so I’ll turn my attention to this AUD pair instead.
See I’m bullish on the Aussie at the moment as the country Down Under just released a positive surprise for their December jobs report.
This could mean more gains for the Australian currency going forward, potentially leading to a double collapse of the GBP/AUD upper neckline.
Price is already hovering around the 1.8800 support area and a break down would confirm that a reversal of the previous trend is warranted. Now I don’t want to miss this one as it could trigger a sell off that is the same height as the chart pattern. That’s almost 200 pips!
I am still somewhat wary of the stochastic turning up from the oversold area as it suggests buyers may return to defend the bottom. Also, the moving averages are not providing strong directional clues at the moment.
If support holds, GBP/AUD could return to resistance near the main 1.9000 psychological level.
Where do you think this couple is headed next?