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AUD/USD binary signal - Australia jobs report - 18 May 2017

Signal details
Entry Price: 
0.7450
Close Price: 
0.7420
Direction: 
Low
Expiry Time: 
20:00 GMT
Result: 
ITM
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The Australian monthly jobs report was released earlier today by the Australian Bureau of Statistics. The data showed that the nation's unemployment fell to 5.7% in April, falling to a three month low back to the levels seen in January this year. Australia's unemployment rate steadily rose from 5.6% late last year to touch a 13-month high in February. The economy added 37.4k jobs during the month, beating estimates of 4.5k while March's jobs report was seen revised to show 60k jobs being added, down from 60.9k that was previously reported.

Following the largely better than expected headline data, the Australian dollar surged ahead fuelled by a weak U.S. dollar as well. AUDUSD has completed six consecutive days of posting bullish gains with price seen trading at a two-week high earlier today at 0.7466.

Looking deeper into the data, the full-time employment fell 11.6k while the monthly average hours worked also declined by 0.12%. Part-time jobs continued to surge ahead with data signaling that part-time jobs increased 49k in comparison to the decline of 11.6k decline in full-time employment.

The official unemployment rate fell by 0.2% pushing the unemployment rate to 5.7% indicating that the growth in the employment had outstripped the underlying population growth with the participation rate staying largely stable. The data however indicated that there was significant slack in the labor market which is something the RBA is likely to stress upon in the upcoming monetary policy meetings.

Still, so far the economic outlook for Australia remains to be broadly positive with a pickup in inflation and the unemployment rate slipping back to the average levels.

Based on the above factors, today's binary trading signal is for AUDUSD. Considering that price is currently testing the resistance level near 0.7450 – 0.7460, which previously served as support, we can expect to see some profit-taking push AUDUSD lower. Therefore, look to purchase daily PUT options in AUDUSD at 0.7450 for a 20:00 GMT expiry time. Later in the day, data from the U.S. will include the weekly jobless claims and the Philly Fed manufacturing index.

Disclaimer: The article is written for informative purposes only and it is not financial advice. The author does not have any position in the currency pairs mentioned, and no plans to initiate a position. He wrote the article himself and expressed his own opinions. He has no business nor personal relationships with any mentioned government entities or stocks. Readers should not treat any opinion expressed by the author as a specific inducement to make a particular trade or follow a particular strategy, but only as an expression of his opinion.