WithFed chairman Powell having confirmed the Fed’s intentions to hike rates at thecoming March meeting, the prospect of today’s data creating any meaningful liftin USD appears slim. Unless we see a strong, strong upside beat on the keynumbers, the impact is likely to be rather muted. Indeed, with the NFP andaverage hourly earnings both expected to have ticked lower last month, we mightbe better off considering the downside opportunities should the data disappoint.While any weakness certainly won’t derail the expected March rate hike, itmight create room for a pull back ahead of that meeting.Whereto Trade Today’s US Labour Reports? AUDUSDThebreak of the bearish trend line in AUDUSD and the move above the .7312 level suggeststhe potential for a much broader reversal higher. The basing patter formed overrecent months in AUDUSD is now starting to resolve higher and while price holdsabove the .7312 level, look for .7409 and .7483 as the next upside targets.
Source: Tickmill