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It is once again the Australian Dollar in the spotlight, with the shockingly strong employment data forcing a move in the single currency to fresh highs against the buck on the year, above critical psychological barriers at 0.9000. The report should help to reaffirm the recent move by the RBA to raise rates this week, with the country being the first across the globe to shift back into a tightening cycle. Price action in the broader currency, market, risk appetite, and surging gold prices above $1050, have also helped to accelerate Aussie gains on Thursday. Key event risk for Thursday now comes in the form of the ECB and BOE rate decisions due up later, but ultimately, no change is really expected with either central bank and we do not expect the outcomes to generate much volatility. Looking ahead the European session is light with only German industrial production (1.8% expected) at 10:00GMT.
Written by Joel Kruger, Technical Currency Strategist for DailyFX.com
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