Forex Trading Plan For Australian Employment Change 07/07/10

Australia Employment Change is similar to U.S. NFP (Nonfarm Payroll) and Canada Employment Change, this is an economic indicator for the Employment Changes in Australia, here’s the forecast:

9:30pm (NY Time) AU Employment Change    Forecast 16K    Previous 26.9K
                                              AU Unemployment Rate    Forecast 5.2%  Previous 5.2%
ACTION: AUD/USD        BUY 46K         SELL -14K

Australian Employment Change release is considered as a high impact report as the job’s market have a direct influence over the entire economy, which in turn affects inflation, and inflation will affect future RBA monetary policy.  With RBA on a pause for further monetary tightening policy, if this release also surprise to the downside, it would push AUD beyond current support and we would be looking to SELL AUD/USD as the optimism over yesterday’s RBA statement on higher inflation target would be cancelled out;  however,  if the release is better, we should be looking for another push on the AUD/USD to the 0.8700~0.8800 levels.

The safe deviation that we are looking for is at least of 30K.  Historically a 25K~30K of difference has produced about 40~50 pips of movement in the direction of the difference  about 75% of the time… Expect to see the effect of this news to last minimum 45 minutes to 2 hours… typical news effect should last under 2 hours.  One other important news to pay attention to is the Unemployment Rate, which is expected to remain steady at 5.2%.  If we do not get a conflict with the Employment Changes, then we will proceed with the trading plan. 

DEFINITION

“Measures the change in number of employed people during the previous month. A rising trend has a positive effect on the nation’s currency. Job creation is an important indicator of economic health because consumer spending, which is highly correlated with labor conditions, makes up a large portion of GDP.”

Related posts:

1. Australia Employment Changes 12/09/09
2. Australia Employment Changes 11/11/09
3. Forex News Trading Plan For CA Employment Change 10/08/10
4. Trade Plan For Canada Employment Change 06/04/10
5. Forex Trade Plan & Video For Canada Employment Change 08/06/10
6. Forex News Trading Canada Employment Change 11/05/10
7. Forex Trading Strategy For Canada Employment Change 07/09/10
8. Forex News Trading – CA Employment Change 12/03/10
9. How to trade Canadian Employment Change 04/09/10
10. Canada Employment Change 02/05/10

Tagged as: AUD, Australia Employment, Australia News, Australian Employment, Consumer Spending, economic health, economic outlook, economy, Employment Changes, fundamental outlook, GDP, Inflation, Job Creation, monetary policy, Payroll, Unemployment Rate