The market is focusing on Non-Farm Payroll tonight, the Weekly Jobless Claim and ADP report published recently show that the Non-Farm Payroll is likely to be good.
Strong improvements in labour market attract the market’s attention to the Fed which is supposed to raise interest rates sooner, which are supporting the USD and putting pressure on gold and AUD.
Besides, China suddenly announced on increasing interest rates, this was the first increase since August last year, making people look to the currency in lower rate such as USD.
At 1 a.m this morning, in Kansas City, Fed President Hoenig delivered his speech about the capacity of rasing interest rates but did not mention on how much and when will rise the rates.
Gold estimated to range this morning 1120-1128, downward trend, gold is under pressure by the above factors. Therefore, AUD can slide down if gold drops to the region 1120 - 1128, the aussie is going to vary in 0.9150/70. The AUD can decline to 0.9100 in the lowest. RSI flats around the 50 point, which shows the amount of buying and selling is quite equal. Most investors are waiting for a clear trend before trading.
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