Aussie strong, yen weak on better than expected U.S. jobs report

Daily Winners and Losers

The Australian dollar tops the performance charts an hour into North American trade, advancing nearly 1% against a weaker greenback. A better than expected print on the September non-farm payroll report saw the dollar come under pressure as risk appetite gathered pace on the prospect of improving conditions in the labor markets. The report showed the addition of 103K jobs last month with an upward revision to the August print to 57K from a flat read.

The AUD/USD pair broke above the 100% Fibonacci extension taken from the Sept. 26 and Oct. 4 troughs at 9763 before encountering resistance at 0.9850.The Aussie is likely to remain well supported on the back of today’s positive data with a breach above interim resistance eyeing topside targets at 0.9875 and the 99 handle. Support rests at 9800 with subsequent floors seen at the 100% extension at 0.9763 and 0.9730.

Key Levels/Indicators

Level/Indicator

Level

100-Day SMA

1.0487

50-Day SMA

1.0293

20-Day SMA

0.9948

2011 AUD High

1.1079

The yen was the weakest performer in early U.S. trade, sliding a modest 0.08% against the dollar. The pair continues to consolidate into the apex of a wedge formation, ranging between the 38.2% and 23.6% Fibonacci extensions taken from Sept. 9 and Oct. 2 crests at 76.57 and 76.83 respectively. The USD/JPY is likely to remain well anchored at these levels throughout the session as both the yen and the greenback go on the defensive as risk appetite steers traders into higher yielding, growth backed currencies like the Aussie, the kiwi, and the loonie. A break above interim resistance eyes topside targets at 76.95 and 77.25. A break below 76.57 looks for a test of the 50% Fibonacci extension at 76.40 and 76.20.

Key Levels/Indicators

Level/Indicator

Level

100-Day SMA

78.50

50-Day SMA

76.91

20-Day SMA

76.68

2011 JPY High

75.94

Michael Boutros, Currency Analyst for DailyFX.com is a Technical/Fundamental Analyst specializing in the FX markets. E-mail: mboutros@fxcm.com.

Twitter: @MBForex
WEB: www.DailyFX.com

About the Author
Michael Boutros Michael Boutros, Currency Analyst for DailyFX.com is a Technical/Fundamental Analyst specializing in the FX markets. E-mail: mboutros@fxcm.com.
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