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Currency Market Analysis

Feb 20, 2020 | Currency Market Analysis

Global Themes

Aussie unloved as (nearly) everything else moves higher

• USDJPY jump sparks rally
• AUD doesn't benefit
• Local jobs due

Technical break

The Australian dollar’s vulnerability to a slowdown in Chinese economic activity was made obvious overnight with a big move in shares, commodities and other key “risk sensitive” markets leaving the AUD behind.

A break higher in the major USDJPY pair, which jumped above technical resistance at key nine-month highs, sparked a large rally across markets last night.

The US’s Dow Jones gained 0.5%, gold climbed 0.8% while the oil prices jumped 2.5%.

AUD pressure

The AUDUSD fell 0.2%.

The Aussie was lower in other markets with the AUDEUR down 0.2% and the AUDCNH also down 0.2%.

The AUDNZD fell 0.1%.

The AUDJPY was boosted by the USDJPY gains, however, with the pair up 1.1%.

Local jobs due

Today’s major focus is on the Australian employment numbers due at 11.30am AEDT.

The market is looking for 10k new jobs to be created with the unemployment rate expected to climb from 5.1% to 5.2%.

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