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AUD/USD and NZD/USD Fundamental Daily Forecast – Aussie Traders Bracing for Employment Change, Unemployment Rate Reports

James Hyerczyk
Australian Dollar traders are bracing for the release of the Employment Change report at 0030 GMT. It is expected to show the economy added 19.9K jobs in October. The Unemployment Rate is expected to inch higher to 5.1%.

The Australian and New Zealand Dollars are trading flat shortly before the release of the major Australian report on labor conditions. Traders will also get the opportunity to react to a report on MI Inflation Expectations and a speech from RBA Assistant Governor Debelle.

The Aussie and Kiwi rose on Wednesday on reports that top U.S. and China officials are in discussions to lay the groundwork for an end-of-the-month meeting between U.S. President Trump and China’s President Xi Jinping at the G-20 summit in Argentina. The currencies were also helped by a possible end to the Brexit stalemate.

At 0008 GMT, the AUD/USD is trading .7236, up 0.0002 or +0.04% and the NZD/USD is at .6794, unchanged.

According to reports, Treasury Secretary Steven Mnuchin and his counterpart Vice Premier Liu He have resumed discussions about a possible deal that would ease trade tensions, just weeks before President Trump and President Xi are set to meet in Argentina for the G-20 summit.

While the US-China news was underpinning prices, an improvement in risk sentiment helped drive the Aussie and Kiwi higher on Wednesday after British Prime Minister Theresa May said she had obtained enough support for her proposed Brexit deal to move forward.

“I firmly believe that the draft withdrawal agreement was the best that could be negotiated, “May told reporters in London. “The choices before us were difficult … but the collective decision by Cabinet was that the government should agree the draft withdrawal agreement and the outlying political declaration.”

In other news, U.S. consumer prices increased by the most in nine months in October amid gains in the cost of gasoline and rents, pointing to steadily rising inflation that likely will keep the Federal Reserve on track to raise interest rates for a fourth time this year in December.

According to the U.S. Labor Department, the Consumer Price Index rose 0.3 percent last month after edging up 0.1 percent in September. In the 12 months through October, the CPI increased 2.5 percent, picking up from September’s 2.3 percent rise. Investors were looking for a 0.3 percent increase.

Forecast

Australian Dollar traders are bracing for the release of the Employment Change report at 0030 GMT. It is expected to show the economy added 19.9K jobs in October. The Unemployment Rate is expected to inch higher to 5.1%.

Since the momentum is to the upside, a better-than-expected Employment Change report is likely to drive the AUD/USD higher. The NZD/USD will probably piggy-back the initial rally.

After the initial reaction, traders will get the opportunity to react to comments from RBA Assistance Government Debelle.

In other news, MI Inflation Expectations came in at 3.6%, down from the previously reported 4.0%.

This article was originally posted on FX Empire

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