Non-farm payrolls gave a big surprise to the downside with only 74K added compared to an expected 200K. The participation rate also decreased which thereby produced an unemployment rate of 6.7%. This is very close to the Fed’s stated target of 6.5% to which they would stop QE altogether. The market got spooked on the data and the greenback had some major moves but be aware that these numbers can be volatile. Every so often we get a rouge one and we should look at the average not at this as the norm. Yes the Fed will reduce their spending but not in one hit and not off this data.
DATA HIGHLIGHTS TODAY – AU Home Loans.
AUDUSD – The US$ weakness off the bad jobs data gave the Aussie a boost back towards the 50ema. Couldn’t get through the minor resistance level and it’s still in no-man’s land for me, not trending at all.
EURUSD – Splitting itself across the ema doesn’t assist in trend indication. This could still go either way.
GBPUSD – A mad low test bar posted Friday and is showing some signs of weakness against some pairs.
NZDUSD – Continues to be uninspiring.
USDCAD – The Canadians had their jobs data too and it was a shocker as well, losing 45K jobs and rising to 7.2%. Expect a rate cut sometime soon for sure now. Still short the Loonie against any pair you like.
USDJPY – A large engulfing seller bar but in reality it is going sideways still. The fib resistance at 105.57 is just too much at this stage.
GOLD – NFP threw the spanner to that idea of selling the metal. Back on the 50ema and looking like it could go either way.
BITCOIN (from Mt.Gox exchange) – Retested 1000 over the weekend but has attracted some selling pressure and should head to test 850..