Forex Market: AUD/USD trading outlook for February 8th

Friday’s trade saw AUD/USD within the range of 0.7060-0.7229. The pair closed at 0.7071, plummeting 1.81% on a daily basis. It has been the 13th drop in the past 24 trading days and also the sharpest one since June 19th 2013, when the pair lost 2.02%. In weekly terms, AUD/USD slipped 0.20% in the current week to mark its third drop in the past five weeks. The pair has lost 0.23% of its value so far during the current month, following a 2.68% slump in January. The latter has been the steepest monthly rate of decline since July 2015, when AUD/USD plunged 5.24%.

On Monday (February 8th) AUD/USD trading may be influenced by the following macroeconomic report listed below.

Fundamentals

Australia

ANZ Job Advertisements

At 0:30 GMT on Monday the Australia and New Zealand Banking Group (ANZ) will publish data regarding the number of job advertisements in Australia in January. It encompasses advertisements in the major metropolitan newspapers and on the internet sites. The corresponding index, based on a survey by the ANZ, dropped 0.1% to 155 704 advertisements in December compared to November. It has been the first drop in the past five months. Internet job advertisements were 0.1% lower in December, following a 1.4% increase in November, while newspaper job advertisements went down 1.2% in December, after another 4.3% drop in the preceding month.

In November 2015 total job advertisements were 1.3% more compared to a month ago. This indicator is used for projecting growth in employment in Australia, as it reflects labor market conditions in the future. An increase in the number of jobs would have a limited bullish effect on the Australian dollar, while a decrease would have the opposite effect.

Correlation with other Majors

Taking into account the week ended on February 5th and the daily closing levels of the currency pairs involved, we come to the following conclusions in regard to the strength of relationship:

AUD/USD to GBP/USD (0.8412, or very strong)
AUD/USD to NZD/USD (0.8313, or very strong)
AUD/USD to EUR/USD (0.5640, or strong)
AUD/USD to USD/CHF (-0.4102, or moderate)
AUD/USD to USD/JPY (-0.4438, or moderate)
AUD/USD to USD/CAD (-0.9417, or very strong)

1. During the examined period AUD/USD moved strongly in one and the same direction with EUR/USD.

2. AUD/USD moved almost equally in one and the same direction with NZD/USD and GBP/USD during the week, while moving almost equally in the opposite direction compared to USD/CAD.

3. The strength of relationship between AUD/USD and USD/CHF, AUD/USD and USD/JPY was moderate.

Daily and Weekly Pivot Levels

By employing the traditional calculation method, the Monday pivot levels for AUD/USD are presented as follows:

Central Pivot Point – 0.7120
R1 – 0.7180
R2 – 0.7289
R3 – 0.7349

S1 – 0.7011
S2 – 0.6951
S3 – 0.6842

By using the traditional method of calculation again, the weekly pivot levels for AUD/USD are presented as follows:

Central Pivot Point – 0.7107
R1 – 0.7216
R2 – 0.7360
R3 – 0.7469

S1 – 0.6963
S2 – 0.6854
S3 – 0.6710