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Forex Alerts 11/5/2008

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Alert - 13:50 (CET) - Aussie waiting for employment data



The AudUsd is trading at 0.6944, ranging from 0.6836 to 0.7006. The current price is under yesterday's close at 0.6989. Checking the hourly graphics, the 20- and 50-day Exponential Mobile Averages (EMA) are over the 200-day EMA.

The traders are watching the resistances at 0.7064 (October 20th high), 0.7239 (October 14th high) and 0.7817 (October 3rd high). The supports are at 0.6618 (October 30th low),  0.6339 (October 29th low) and 0.6000 (key).

Even though the aussie is very near last session's highs, helped by a trade surplus larger than expected, it will have another important test at 1:30 CET: the change in employment. The aussie market estimates that the Australian economy lost 10.000 jobs, against the 2.200 gain in September.

The RBA cut its rates in 75bp to stimulate its economy, that's being punished by China's economy slowdown. China is Australia's biggest trade partner and is now buying less metals. This way, Governor Stevens, from the RBA, has already said that it will continue to expand the monetary policy, if the economic activity keeps falling.

Checking the daily charts, we see that the current price is over the 61.80% (0.6728)  aand under the 50.00% (0.7327). Fibonacci Retracement lines. The Relative Strenght Index (RSI) is at 54 points, rebounding from the overbought area. The volatility per hour could reach 150 pips.




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