Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 76% of retail investor accounts lose money when spread betting and/or trading CFDs with this provider. You should consider whether you understand how spread bets and CFDs work and whether you can afford to take the high risk of losing your money.

Analysis: Aussie Dollar and this mornings unemployment report

CMC Markets

The Aussie Dollar heads into this mornings unemployment rate on a firm note. Aussie held its own against against a relatively strong US Dollar last night. As result the Aussie is firmer against most of the cross rates. Today's employment report comes at a time when market opinions are fairly divided on whether or not we will see more rate cuts from the RBA. The unemployment rate will be a key factor over coming months. The consensus expectation is for jobs growth of 15,000 in today's 11.30m release. This would be a rebound from last month when 11,000 jobs were lost. Over the past 6 months we have lost an average 2,000 jobs each month. If the consensus expectation is correct, and assuming no revisions to prior figures, the rolling 6 month average would improve to +6,000. The consensus expectation today is for 15,000 jobs growth to be good enough to leave the unemployment rate steady at 5.8%. However, the trend is up. Over the past 7 months, the unemployment rate has increased from 5.4% to 5.8%. Average monthly jobs growth of 5-10,000 would not be enough to stop unemployment rising over time. Even so, you have to start somewhere. A stronger than expected number today would follow recent post election increases in business and consumer confidence and could be see the Aussie build on the firm tone set overnight. A weak number, may be seen as making another rate cut more likely and could see selling pressure on the Aussie. Looking at the 4 hour chart, a trend line across recent lows provides possible minor support for the Aussie around .9420/.9425. Below that the 50 period moving average is a potential support around .9400. The recent peak at .9484 provides potential resistance and above that the 19 September peak at .9529.