MarketPulse | May 05, 2016 09:38AM ET
The Australian dollar has posted slight gains on Thursday, as AUD/USD trades at the 0.75 line in the European session. In Australia, Trade Balance and Retail Sales both beat their estimates. In the US, Unemployment Claims jumped to 274 thousand, higher than expected. On Friday, the US releases three key employment indicators – Average Hourly Earnings, the Unemployment Rate and Nonfarm Payrolls.
There was positive news out of Australia on Wednesday. Retail Sales climbed 0.4% in March, above the estimate of 0.3%. This was the indicator’s best showing in four months. Australia’s trade deficit narrowed to A$2.16 billion in March, compared to A$3.41 billion a month earlier. The reading easily beat the estimate of A$2.95 billion. Earlier this week, the Aussie posted sharp losses, following the RBA’s surprise rate cut by the RBA from 2.00% to 1.75%. Although the central bank has consistently sent out the message that it would not hesitate to lower rates if warranted by economic conditions, it was clearly reluctant to act and held rates at 2.00% for 10 months before this week’s dramatic move. What was the catalyst for the RBA’s change of heart? Until last week, the markets were expecting the RBA to remain on the sidelines, but aA rate cut presented the RBA with the added benefit of weakening the Australian currency . With an Australian election expected in July, the RBA may hold off from any further action until after the political picture becomes clear..
AUD/USD Fundamentals
Wednesday (May 4)
Upcoming Key Events
Thursday (May 5)
Upcoming Key Events
Friday (May 6)
*Key releases are highlighted in bold
*All release times are EDT
AUD/USD for Thursday, May 5, 2016
AUD/USD May 5 at 9:10 EDT
Open: 0.7465 Low: 0.7457 High: 0.7513 Close: 0.7498
AUD/USD Technical
S3 | S2 | S1 | R1 | R2 | R3 |
0.7251 | 0.7339 | 0.7472 | 0.7560 | 0.7678 | 0.7796 |
Further levels in both directions:
OANDA’s Open Positions Ratio
AUD/USD ratio is showing little movement on Thursday, consistent with the lack of movement from AUD/USD. Long and short positions remain close to an even split, indicative of a lack of trader bias as to what direction AUD/USD will take next.
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