AUD’s date with destiny (200d-MA)
For the best part of two years, AUDUSD traders would have taken confidence in the fact that the major Antipodean pair was unable to break its 200d-MA – a significant resistance level. This notion, however, was wiped mid-December as the Australian Dollar soared to 70c alongside a global risk rally.
Since the turn of the year, AUDUSD seems to have its crosshairs on its 200d-MA, which sits a touch under 69c at 0.6897. US-Iranian tensions, slack in the Aussie labour market and broad risk-off sentiment in the near-term could likely prove the impetus for a test back into major support.
Dec. Aussie Job Ads telling for employment
Aussie Job Ads, a leading report from ANZ which collates internet and newspaper job ads across several search platforms in December, is scheduled for release at 11.30am AEDT. This report on previous occasions has been a telling indicator for unemployment, job vacancies and employment growth – key metrics which help markets assess the state of Australia’s labour market and have proven impactful for AUD traders in recent times.
Job Ads dropped in November by 1.7% and have been falling for the most part since August 2019. If stronger confirmation is to come through for the RBA’s “gradual turning point” in the economy; job ads must exhibit some improvement walking into Jan 23’s Aussie employment report.
ASX points higher following positive Wall Street session
ASX Futures rallied 30pts overnight suggesting a moderate start for the cash index at the open. Crude oil, however, has seen a decent pullback to US$68 from highs of US$70.50/bbl and could see oil & gas stocks, some of the biggest movers yesterday, retrace a portion of strong gains made. Look for Santos (STO), Woodside Petroleum (WPL) and Oilsearch (OSH.AX) to open down. Gold is also slightly down off yesterday’s highs around US$1,566 as risk sentiment steadied. Fed operations are likely the protagonist given 100% acceptance of US$76.9bn in bids took place in the overnight repo market.
