Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage.

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The vast majority of retail client accounts lose money when trading CFDs.
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Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. The vast majority of retail client accounts lose money when trading CFDs. You should consider whether you can afford to take the high risk of losing your money.
Important Notice - Fraud awareness
Important Notice - Scam alert
The vast majority of retail investor accounts lose money when trading CFDs / Spread betting with this provider.
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. The vast majority of retail investor accounts lose money when trading CFDs / Spread betting with this provider. You should consider whether you understand how CFDs / Spread betting work and whether you can afford to take the high risk of losing your money.
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AUDUSD Draws Focus Amidst Employment & Retail Sales Release

AUDUSD has potential for volatility after the release of US retail sales data.

Traders will now wait for the Australian employment figures, which are scheduled to be released ahead of the Asian session.

AUDUSD – 4H Chart

AUDUSD – 4H Chart

The Aussie dollar has been on a solid uptrend but has stalled at the 0.6770 level. The employment figures will determine whether the pair can push higher or retreat toward the 0.6600 support level.

Retail sales for the United States economy rebounded more than expected in October and will boost the greenback. The US Department of Commerce said retail sales volumes expanded at a monthly pace of 1.3% to reach $694.5bn. That was a strong performance after last month’s growth was flat. Excluding motor vehicles and parts, retail sales rose by 1.3% and by a whole percentage point when fuel station sales were excluded. 

Employment figures for the Australian economy are forecast to show a gain of 15k jobs, compared to a small 0.9k growth in the previous month. The job market’s weakness is expected to show a tick higher in unemployment to 3.6% from 3.5%. 

Inflation is still lingering in Australia with a rise in wages, which climbed 1% in the three months through September from the previous quarter. That was the fastest pace since early 2012 and marked an annual gain of 3.1%, government data showed on Wednesday. 

Both of those readings were higher than estimates. They looked to have secured another interest rate rise in December, bringing the Reserve Bank of Australia’s benchmark rate higher by 3% over eight months.

“While we don’t think this figure will alarm the RBA, it is a large step up,” said Felicity Emmett, a senior economist at ANZ. “It’s therefore unlikely the RBA will pause in December. So, absent an exceptionally weak October employment report tomorrow, we continue to think they’ll raise the cash rate by 25 basis points.” 

Traders can await the employment figures and see if the latest pause in the Aussie will lead to a correction.

Last Updated: 17/11/2022

This market commentary and analysis has been prepared for ATFX by a third party for general information purposes only. Any view expressed does not constitute a personal recommendation or solicitation to buy or sell as it does not take into account your personal circumstances or objectives, and should therefore not be interpreted as financial, investment or other advice, or relied upon as such. You should therefore seek independent advice before making any investment decisions. This information has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. We aim to establish and maintain and operate effective organisational and administrative arrangements with a view to taking all reasonable steps to prevent conflicts of interest from constituting or giving rise to a material risk of damage to the interests of our clients. The market data is derived from independent sources believed to be reliable, however we make no representation or warranty of its accuracy or completeness, and accept no responsibility for any consequence of its use by recipients. Reproduction of this information, in whole or in part, is not permitted.


 

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