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AUD/USD binary signal - Australia Unemployment Report -18 Jan 2018

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21:00 GMT
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Australia released its monthly unemployment report earlier today. Data showed that the economy added 34.7k jobs on the month beating estimates of 13.2k. Previous month's data was also revised higher to show 62.6k net job gains on the month.

Australia's unemployment rate however disappointed, falling to 5.5%. This comes after the unemployment rate was steady at 5.4% for nearly two consecutive months. The latest labor market report showed the longest streak in the economy for 15 months as the economy continuously added more jobs to the economy.

On a yearly basis, the Australian economy added 403,100 jobs or an average of 33,600 jobs every month. It was also the fastest growth on a year over year basis.

The labor force participation rate which measures the working age Australians who are in a job or seeking new work rose to 65.7%. This was the highest level in nearly seven years and indicated that the labor market was improving strongly.

With the release of the December unemployment report, the markets are looking a potential hawkish shift from the RBA this year. Experts believe that the first rate hike from the RBA could come in as early as August this year although others suggest that the central bank could wait until the fourth quarter before hiking rates.

Inflation data will of course remain key for the RBA, but with the labor force participation rate rising, consumer prices are expected to rise over the medium term as a result.

Today's forex binary signal is AUDUSD, the currency pair remained muted to the labor market data earlier today. This comes as the U.S. dollar was seen rebounding strongly yesterday.

In the near term, we expect the Australian dollar to rise to 0.7975 where resistance is seen. A reversal off this level is expected. Therefore, we would purchase daily Put options at 0.7975 as we expect AUDUSD to test this resistance level and close lower on the day.

binary options signal audusd 18 Jan 2018

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. 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. All risks and coasts associated with online trading are your responsibility.