AU Employment Change

Australia Employment Change is similar to U.S. NFP (Nonfarm Payroll) and Canada Employment Change. It is an economic indicator for the Employment Changes in Australia, and is the last tradable high impact release for Australia this week. It is likely to add momentum to the current AUD trend.
Here´s the forecast:

9:30pm (NY Time) AU Employment Change Forecast 11.5K Previous -36.1K
AU Unemployment Rate Forecast 5.6% Previous 5.6%
DEVIATION: 25K (BUY AUD @ +36.5K / SELL AUD @ -13.5K)

The Trade Plan
The deviation that we are looking for is at least 25K. Historically, a 25K~30K of difference has produced about 40~50 pips of movement in the direction of the difference about 75% of the time. Expect to see the effect of this news to last minimum 45 minutes to 2 hours; typical news effect should last under 2 hours. Another important news item to focus on is the Unemployment Rate, which is expected to be tick up at 5.5%. If there are no conflicts with the Employment Change, we will proceed with the trading plan.

We´ll look to trade this using after news retracement trading method. We´ll wait for the market to retrace, and stay out during the release time. If we get a +25K of release, our bias will be to buy AUD against other currencies; if we get a -25K of release, our bias will be to sell AUD against stronger currencies. We´ll only enter after we see a decent retracement from the initial spike, and if we get those release numbers.

Outlook Score
Outlook score is derived from market sentiment, focus, and economic indicators for the currency. It represents the long-term trend of the currency and its market perception. In short, a strong Outlook Score means more long-term demand for the currency, and a weak Outlook Score is the opposite.

DEFINITION
The Australia Employment Change measures the change in the number of employed people during the previous month. A rising trend has a positive effect on the nation´s currency. Job creation is an important indicator of economic health because consumer spending, which is highly correlated with labor conditions, makes up a large portion of GDP.”

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