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AUD/USD Forecast 3 June 2016

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AUD/USD Forecast 3 June 2016
4.3/5 of 4 ratings

We expect the weakening of the Aussie against the US dollar

Yesterday the Australian data were positive. In April the trade balance cut the deficit from -1.97 billion dollars to -1.58 billion at the anticipation of -2.11 billion. The retail sales rose less than forecast: 0.2% vs. 0.3%.

Today, Australia's Services index from AIG rose from 49.7 to 51.5, and this caused the correction of the "Aussie" at the beginning of the Asian session.

Today, the investors expect good data on the US labor market. The NFP is forecasted at 164K in May vs. 160K in April. The general unemployment rate is expected to decrease from 5.0% to 4.9%. The average hourly earnings are expected to grow by 0.2%.
We expect the weakening of the "Aussie" to 0.7070 on the back of strengthening the US dollar.

How to trade

We would buy call options if the pair rises above 0.7262. We would buy put binary options if the pair falls below 0.7210.

Expiry time: 20:00 GMT

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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