THE TAKEAWAY: Private sector reading of US labor market best since December 2012 > Suggests NFPs should remain above +180K > AUDUSD BEARISH
There’s a slew of important US data out this morning but the first release out has already proven to be US Dollar positive.
The US ADP Employment Change report for July came in above expectations, suggesting that labor market progress will remain strong when the official NFP report is released this Friday; gains are likely to fall in the +185K to +200K window. Here is the data provoking the moves:
- ADP Employment Change: +200K versus +180K expected, from +198K (revised higher from +188K)
AUDUSD 1-minute Chart: July 31, 2013
Charts Created using Marketscope – prepared by Christopher Vecchio
Following the release, the AUDUSD tumbled to fresh yearly lows at $0.8964, falling from a prerelease level of 0.9011. At the time this report was written, the pair had rebounded to 0.8976. This is also the lowest exchange rate seen since September 2010.
--- Written by Christopher Vecchio, Currency Analyst
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