The Australian labor market surprised to the upside on its headline figure on the back of part-time jobs creation. Full-time jobs were lost and the unemployment rate advanced. The Australian Dollar came under selling pressure as bearish momentum is expanding. The Reserve Bank of Australia will closely follow economic developments as its last minutes indicated that an interest rate cut is on the table. Will the AUDCHF enter a bigger sell-off or is the current sell-off a limited move to the downside? Today’s fundamental analysis will cover price action in both directions.
The Swiss trade surplus for August came in weaker than expected with a slump in exports. This confirms that the global economy continues to slow down faster than economists predicted. Forex traders will get the SNB interest rate decision today where no change is expected. This will follow the FOMC and ECB interest rate cuts while the Bank of Japan kept rates unchanged. How will the AUDCHF be impacted following the SNB announcement? Subscribe to the PaxForex Daily Fundamental Analysis and grow your balance trade-by-trade!
Here are the key factors to keep in mind today for Australian Dollar trades:
- Australian Employment Report: The Australian Employment Change for August was reported at 34.7K. Economists predicted a figure of 15.0K. Forex traders can compare this to the Australian Employment Change for July which was reported at 36.4K. The Unemployment Rate for August was reported at 5.3%. Economists predicted a reading of 5.2%. Forex traders can compare this to the Unemployment Rate for July which was reported at 5.2%. 15.5K Full-Time Positions were lost and 50.2K Part-Time Positions were created in August. Forex traders can compare this to the creation of 32.0K Full-Time Positions and 4.4K Part-Time Positions which were reported in July. The Labor Force Participation Rate for August was reported at 66.2%. Economists predicted a reading of 66.0%. Forex traders can compare this to the Labor Force Participation Rate for July which was reported at 66.1%.
- RBA FX Transactions: RBA FX Transactions for August were reported at A$608M. Forex traders can compare this to RBA FX Transactions for July which were reported at A$837M. RBA FX Government Transactions for August were reported at -A$750M and RBA FX Other Transactions were reported at A$531M. Forex traders can compare this to RBA FX Government Transactions for July which were reported at -A$961 and to RBA FX Other Transactions which were reported at -A$4,377M.
Here are the key factors to keep in mind today for Swiss Franc trades:
- Swiss Trade Balance: The Swiss Trade Balance for August was reported at CHF1.588B. Economists predicted a figure of CHF3.220B. Forex traders can compare this to the Swiss Trade Balance for July which was reported at CHF3.686B. Exports for August decreased by 4.4% monthly and Imports increased by 1.0% monthly. Forex traders can compare this to Exports for July which decreased by 1.2% monthly and to Imports which decreased by 0.5% monthly. Swiss Watch Exports for August increased by 4.7% annualized. Forex traders can compare this to Swiss Watch Exports for July which increased by 4.3% annualized.
- Swiss National Bank Sight Deposit Interest Rate: The Swiss National Bank Sight Deposit Interest Rate is predicted at -0.75%. Forex traders can compare this to the previous Swiss National Bank Sight Deposit Interest Rate which was reported at -0.75%. The SNB 3-Month Libor Lower Target Range is predicted at -1.25% and the SNB 3-Month Libor Upper Target Range is predicted at -0.25%. Forex traders can compare this to the previous NB 3-Month Libor Lower Target Range of -1.25% and to the SNB 3-Month Libor Upper Target Range of -0.25%.
Should price action for the AUDCHF remain inside the or breakdown below the 0.6730 to 0.6810 zone the following trade set-up is recommended:
- Timeframe: D1
- Recommendation: Short Position
- Entry Level: Short Position @ 0.6755
- Take Profit Zone: 0.6500 – 0.6575
- Stop Loss Level: 0.6845
Should price action for the AUDCHF breakout above 0.6810 the following trade set-up is recommended:
- Timeframe: D1
- Recommendation: Long Position
- Entry Level: Long Position @ 0.6845
- Take Profit Zone: 0.6955 – 0.7000
- Stop Loss Level: 0.6800
Open your PaxForex Trading Account now and add this currency pair to your forex portfolio. Online forex trading is the fastest growing sector of the global financial system, sign-up for your own PaxForex Trading Account today and earn more pips per trade!
We are one of the fastest growing Forex Brokers in the Market. Trade with PaxForex to get the full Forex Trading experience which is based on...
- The Reliability on all Assets in the Market
- Trusted Worldwide for over a Decade
- Live Multi-Lingual Online Support 24/5
