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AUD/USD Forecast 07/11/2013

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AUD/USD Chart 07/11/2013
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The Australian dollar might be ready for another leg lower

Whilst trading withing a range for the past couple of days the Australian dollar could be redying itself for another leg lower. We would be selling puts on rallies in the pair on daily expiries.

The AUD/USD pair has been trading in a tight range, but we expect that to be concluded with a break below 0.9450. The currency moved sharply lower overnight following the announcement of a dismal new jobs numbers

Forex binary options pair AUD/USD is poised to take a dive, but we might see a short rally first. The Aussie has fallen sharply on news that the economy of Australia has gained only 1,100 jobs in the month of October. A very bad number, with expectation being for a rise of 10,000. On top of that most of the employment gains were made in part-time work, while full-time positions were cut by 27,900.

Just before the news the pair was trading around 0.9525, following the data it has swiftly dropped by 50 pips to 0.9475 before consolidating and clawing higher towards 0.9490. We are currently seeing the price hover around 0.9485.

What we would be doing here is to buy puts on rallies towards 0.9540-50 area on an hourly expiration, and buy daily and weekly puts as well. The heavily dependent on commodity exports Australian economy is not likely to grow much.

Initial jobless claims and preliminary third quarter GDP data are the most likely to influence future price moves in AUD/USD so we will focus on these numbers at the same time - 13:30 GMT. The main news event today - the press conference by the European Central Bank is also at 13:30 GMT, but that is not very likely to affect this pair much.

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.

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