Aussie rises ahead of key employment dataThe Australian dollar has reversed directions and pushed above the 72 line. In the North American session, AUD/USD is trading at 0.7224, up 0.54% on the day.
Australia will release December employment numbers in Thursday's Asian session. The economy is expected to have created 43 thousand new jobs, which would be a modest gain compared to the monster spike of 366 thousand in November. The market is also projecting that the unemployment rate will tick lower to 4.5%, from the 4.6% beforehand. A strong release would likely give a boost to the Australian dollar.
Earlier today, Australia's Westpac Consumer Sentiment for January disappointed with a reading of -2.0%, marking a second straight decline. Consumers are wary that the spike in Omicron cases could trigger further lockdowns. The number of hospital cases has swelled and on Tuesday, Australia recorded 77 deaths from Covid, the highest one-day total since the pandemic began.
An ANZ report last week noted that the Australian consumer is suffering from an "Omicron malaise in spending" and that could mean trouble for the Australian economy, as consumer spending is a key driver of growth. The major banks are planning to revise downward their growth forecasts and Commbank has already lowered its Q1 forecast QoQ from 2.3% to just 1.0%.
In the US, there are growing concerns that the Federal Reserve will accelerate the tightening of its policy. This has been reflected in an upswing in US Treasury yields. The 10-year rate climbed above 1.80% on Tuesday, a 2-year high, and hit 1.90% earlier today, but has retreated to 1.83%. The 10-year rate hasn't been above the symbolic 2% level since July 2019 but could reach that line shortly. Most analysts are projecting three or four rate hikes in 2022, but the Fed may have more in store - Jamie Dimon, CEO of JP Morgan, made headlines last week when he projected the Fed could hike up to six or seven times this year.
There is resistance at 0.7304 and 0.7392
AUD/USD has support at 0.7139 and 0.7062
Consumersentiment
Consumer SentimentConsumer Sentiment continues in Trend.
Its ability to forecast "Recession" is unparalleled.
100% accurate as a Leading Indicator of overall
Economic conditions.
It Surveys 500 households about their expected
financial conditions, their sentiment about the
general Economic conditions, Unemployment and
the status of household Savings.
Consumers’ confidence towards the future economic
conditions, as a consequence of which they are less
probable to save, and more probable to spend money
on major purchases in the next 365 Days.
Inflation has an important role as Purchasing Power
Parity is the "Price" of a currency expressed in terms
of the number of goods or services that a unit of money
can purchase.
Purchasing power is important as, Ceteris Parabis,
inflation decreases the number of goods or services
a Consumer would be able to purchase.
Higher cost of living, as well as increasing interest rates
affect Global Markets - Inflation increases the demand for
Revolving Credit at a time when many Institutions are
seeing their falling credit ratings create large Risks to
both Corporate and Government Bonds.
Rising Rates for UST's is indeed a signal of Quality Control
Issues for the United States Treasury and Government. It
used to be 4 decades ago, now... it is simply a measure of
how distended the late-stage Credit Cycle has devolved.
QE has turned former Citizens into Consumption Units to
be measured and monitored for Big Data.
A rate of return equal to or greater than the rate of inflation
today is difficult for those living on Fixed Income Streams.
Boomers, GEN X, and the few remaining Greatest GEN
are seeing their Savings lose their Purchasing Power at
the highest rate within their lifetimes.
For the Youth of our Nation - Gen Z & Millenials it is caught
as catch can - where there's action there's an opportunity.
unfortunately for the Majority - remain prey with less
opportunity for a great many reasons.
Consumer Sentiment - 66.8%Try as they might - The perception Monetary
& Fiscal Policy is Failing...
Inescapable.
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72.5 expected
Swing and a...
Miss
_______________________________________
Every Economic Downturn is led by 18 Months
of...
F_ck this BS, we're in Deep Sh_t.
Every one Ever.
_______________________________________
Wall Street has its Fill.
All that's left is for the Equity Complex to
Cloes Red Today.
Difficult to Fathom?
Not really.
_______________________________________
The Operators know precisely what's up.
The FED... bailout after bailout created
another QE Bubble.
Jerry excels at Transitory Bubbles as Did
Yellen, Bernanke, and Sir Allen.
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Friday's are an easy Fill as the Degenerates
are mostly distracted with Weekend Plans.
Participation is low, the perfect time to run
the Tables ahead of the continued correction.
The move Lower is far from over, the question
we will answer is - will we see lower lows or
will Trending Support now hold?
_______________________________________
Today's Gains do not belong.
The ES traded to Resistance, last week's Pivot.
The NQ made a Large Front Run of its Objective
by 40+ Ticks.
The YM is broken, it was the First to break signaling
a complete loss of confidence in the Seasonals
ability to keep this together.
_______________________________________
A very serious Decline is set up, one in which
we will see far more Vertical Down.
CRASHY MOVE DEAD AHEAD - IMHO
Positioned 82% in SELL of ES NQ YM
We have not seen and inside out Friday in a
very long time.