Chart of the Day: AUS200
Geopolitical tensions have driven markets this week. As the conflict seemingly settles, we’re looking ahead to tonight’s non-farm payroll figures from the US.
Markets showed vulnerability amid US-Iran uncertainty, but the sell-off in equities was short lived. Yesterday the S&P 500 (US500) closed at another record high, and today the AUS200 is following suit, breaking above the record high close 6890.3 in early hours of today’s trading.
We’re watching tonight’s US non-farm payroll data, after stronger than expected job growth in November (266k v 180k expected) and the unemployment rate dropping slightly to 3.5%. December job growth is expected to slow to 160k and unemployment rate to hold at 3.5%.
Right now, we feel the market is preparing for a strong break and upward push to a new all-time high with 21-day RSI at the midpoint 50% range. So, do we fade the rally as price respects the range, or will a break-out guide the index towards 7000 over time?
We expect the Australian dollar to respond to an upside close, giving AUDUSD and AUDJPY a bid up to reclaim some of the ground lost earlier in the week.
Ready to trade?
It's quick and easy to get started – even with a small deposit. Apply in minutes with our simple application process.
Pepperstone doesn’t represent that the material provided here is accurate, current or complete, and therefore shouldn’t be relied upon as such. The information provided here, whether from a third party or not, isn’t to be considered as a recommendation; or an offer to buy or sell; or the solicitation of an offer to buy or sell any security, financial product or instrument; or to participate in any particular trading strategy. We advise any readers of this content to seek their own advice. Without the approval of Pepperstone, reproduction or redistribution of this information isn’t permitted.