AUD/USD Fundamental Analysis January 19, 2012, Forecast

Close of Asian Markets

Economic Events:

Jan. 19 

00:30   AUD   Employment Change   10.00K   -6.30K  

00:30   AUD   Unemployment Rate   5.30%   5.30%

Employment Change measures the change in the number of people employed. Job creation is an important indicator of consumer spending.

A higher than expected reading should be taken as positive/bullish for the AUD, while a lower than expected reading should be taken as negative/bearish for the AUD.

08:30 USD Initial Jobless Claims 385.00K 399.00K

08:30  USD Continuing Jobless Claims 3590.00K 3628.00K

Initial Jobless Claims measures the number of individuals who filed for unemployment insurance for the first time during the past week. This is the earliest U.S. economic data, but the market impact varies from week to week.

Continuing Jobless Claims measures the number of unemployed individuals who qualify for benefits under unemployment insurance.

A higher than expected reading should be taken as negative/bearish for the USD, while a lower than expected reading should be taken as positive/bullish for the USD.  If the report comes in under the 385K we can expect to see the USD fall against the AUD, but if the report is at the 399K level or above expect to see the USD rally and trend upwards on solid economic news.

Analysis and Recommendation:

Support and Resistance can be found at these levels    S1: 1.0284 |S2: 1.0198 |S3: 1.0146 |

R1: 1.0422 |R2: 1.0474 |R3: 1.0560

AUD/USD was trading at 1.0374, having made no moves at all during this session.

No economic news is expected out of the Austrailian reports and the US jobs reports are expected to be inline with forecast. This weeks moves if any will be on EU updates. Yesterday and today seems to be a wait and see day. Most currencies are trading within tight ranges. It seems to be the calm before the storm. Gold was slightly down at the end of the US session, but not enough to make any significant dent and it seems it was a more profit taking.

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