The Aussie Dollar chart and this morning's employment report

CMC Markets

The Australian August employment report will be released at 11.30 AEST. Consensus expectations are for jobs to be +10,200 compared to a decline of 10,200 in July. The unemployment rate is expected to nudge up to 5.8% from 5.7% as the volatile participation rate moves around. However, it also reflects the fact that jobs growth has not been enough to employ the growing workforce. Over the past 6 months, jobs growth has averaged 5,000/per month and the unemployment rate has risen from 5.4% While there is scope for the Aussie Dollar to be sold if the number is weak, the bigger risk could be to the upside if the number is particularly strong. There may be a tendency for the market to see a weak number as being a bit "historical" in the sense that it predates the election and the boost to business and consumer confidence we have seen since. A strong number would be a higher base on which any post election and China recovery improvement could be built. The hourly Aussie Dollar chart has a well defined trend channel that could provide some useful support and resistance levels for traders if they are either tested or broken. Check the chart forum attached to the AUDUSD chart for details.

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