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AUD/USD Signal - U.S. ADP Payrolls - 08 Mar 2017

Signal details
Entry Price: 
0.7580
Close Price: 
0.7530
Direction: 
Low
Expiry Time: 
21:00 GMT
Result: 
ITM
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Today’s ADP/Moody’s private payrolls report will be a major economic release of importance that could potentially impact the U.S. dollar cross-currencies. The report comes out ahead of this Friday’s non-farm payrolls report. The data comes at a time when the markets have fully priced in a rate hike from the U.S. Federal Reserve next week. The Fed is expected raise the short term interest rates by 25 basis points next Wednesday. The only obstacle is expected to be in the form of this week’s payrolls report.

Today’s ADP payrolls report will potentially shed light on what to expect from the U.S. economy and hiring in February. Economists polled expect private sector hiring to increase by 184k jobs during February. This is significantly lower from January’s 246k jobs added. However, the data is unlikely to dent sentiment much.
The U.S. dollar has remained in a holding pattern and was seen a tad weaker after yesterday’s trade deficit data showed that U.S trade balance widened to a 5-year high. However, the markets are currently focused on the ADP’s private payrolls today.

From a technical outlook, AUDUSD is seen trending weaker with the potential head and shoulders pattern formed off the 4-hour time frame. The neckline support at 0.7580 – 0.7590 was breached and price action is expected to continue lower towards 0.7535. However, the lack of any retest towards the broken neckline support at 0.7580 – 0.7590 could mean a near term rebound in prices. Thus look to purchase daily PUT options near 0.7580 with a 21:00 GMT expiry time on a bearish continuation in AUDUSD.

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.