IS AUSSIE DOLLAR GOING TO THE LOWEST LEVEL SINCE OCTOBER 2008?

The week finished in force with us dollar gaining against all major currency pairs.Friday the Us Bureau of Labour and Statiscs published jobs reports (NFP) that increased by 271 000 in October which is more than economists forecast,the unemployment rate remain unchanged at 5 %.

This results come to emphasize again that FED will hike the interest rate soon,maybe in december,important to see if the Janet Yallen will change his dovish tone in this market circumstance with strong evidence that the us labour market is improving.

What would be the market reaction when FED will hike the interest rate? How far can dollar goes? that are questions that nobody knows

Today I will try to make a short analysis in my view how a strong us dollar will afect aussie dollar.The australian currency lost important ground this week,australian private sector house approvals falls with 1,8 % in September 2015,balance on goods and services was a deficit of 2,596 m$ in september 2015,retail sales rose 0,4 % in september 2015 compared to september 2014 the trend estimate rose by 3,7%.

RBA left the cash rate on hold but surprising with their dovish tone,a new possible rate cut in the next period.

                                                       TECHNICAL ANALYSIS

The week is closed at 0,70472  which is close to support line  on weekly chart .If the price will broke the support line is very probably that the price will continue his  rallies with a possible target near to 0,600  which will be the lowest level since 2008.

If the price will be consolidate around 0,70472  and will not broke the weekly support line we can think to initiate buy orders only if the price broke resistance line 0,73600  .


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