The Australian Dollar swung between gains and losses after travelling in a modest range between US$0.7288 and US$0.7338 on Friday and eventually ended the session flat after a dismal Non-Farm Payrolls report.
Friday’s U.S. Non-Farm Payrolls report, a key indicator for the U.S. Federal Reserve as it prepares to slow its $120 billion-per-month bond-buying program, badly missed expectations.
The U.S. economy created just 194,000 jobs in September, missing a forecast of 490,000, the U.S Labor Department reported.
Domestically this week, markets look to this Thursday’s employment figures, with the forecast looking for a -135.0K and the unemployment rate is expected to increase from 4.5% to 4.8%.
Based on the daily technical assessment, the Relative Strength Index (RSI) 3-daily ‘lookback’ indicator has strengthened due to Friday’s rise, while the Moving Average Convergence Divergence (MACD) is positive.
The Average Directional Movement Index (ADX) trend indicator decline suggests the presence of a trading market and the absence of a trend.
From the given renewed momentum, upside tests could stretch to US$0.7320, where bears are likely to stage another ambush.