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Aussie Hit by Unemployment Rise16 May 2019 by Dave Evans

Morning Report: 07.00 London

The Australian dollar is hurting today as a result of higher than expected unemployment figures. The AUD/USD is off the lows, but still seems set for its fourth straight day of losses. The AUD/JPY continues to struggle, falling to its lowest levels since the beginning of the year.

Dollar pairs are mixed as the dollar index slips back to an unchanged level this morning. The EUR/USD is making small gains and holding support at 1.1200. The GBP/USD is also unchanged, but at least has so far halted the consistent slide that has been in place since the 6th. The EUR/GBP is unchanged after eight straight days of gains, with yesterday being a possible exhaustion point.

The USD/CHF remains rangebound as the 1.0500 level continues to hold. The EUR/CHF is also pausing and holding the 1.1300 support level that has proven sticky this week.

The USD/JPY is unchanged but still appears vulnerable with the lows in sight. The GBP/JPY is unchanged this morning, but the downtrend remains firmly on track. The EUR/JPY is following suit. The worst performer is the AUD/JPY which continues to struggle in the face of a China and domestic slowdown.

Coming up today

Today we have German Buba President Weidmann speaking at 08.15.

Canadian manufacturing sales are at 12.30.

Also at 12.30, are US building permits and the Philly Fed Manufacturing Index.

BOC governor Poloz speaks at 15.15.

FOMC member Brainard speaks at 16.15.

MPC member Haskel speaks at 17.30.

Trade Idea

The AUD/JPY is struggling, but the 2019 lows are still a potential target.

Aussie Hit by Unemployment Rise

A good way to play this is a LOWER trade predicting that the AUD/JPY will close below 75.50 in 14 days for a potential return of 134%.

Aussie Hit by Unemployment Rise