January 7 2021
It’s not just about US data today, Canada is going to release some heavy weight data of its own, including Canadian employment change, expect an increase close to 30k , also out is Ivey PMI which is forecast to print 61.
The loonie could be quite mad to trade tonight.
Yesterday’s failure to sustain a break above 1.2780 resistance was disappointing for the USD bulls, and has has led to a drop back to test support at 1.2700.
A break below 1.2700 would see further weakness to 1.2650 and 1.2620 in extension. As already mentioned 1.2780 is the key to the upside.
The AUD Failed again at 0.7270/80 and subsequently has sold off back below 0.7200.
It looks like the Ozzie is heading south to test 0.7100 support and possibly 0.7060 in an extended downside move.
However, should today’s NFP disappoint the outlook for the AUD will brighten if we can get back above 0.7220, and then have another run at 0.7270 resistance.
The Kiwi is struggling to get some upside traction and has suffered a set back trying to break 0.6800 USD, if it can break above here the target will be 0.6860.
However, the momentum looks to be with the bears and 0.6700 looks vulnerable, if broken you should see a downside extension to 0.6660
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