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FxWirePro: GBP/AUD under pressure after disappointing U.S. employment data

• GBP/AUD dipped   on Friday   as a weaker-than-expected U.S. jobs report weighed on the dollar and dampened expectations for a Federal Reserve interest-rate hike next month.

•   U.S. employment fell by 23,000 jobs last month, sharply missing the 80,000 gain forecast by economists surveyed by Reuters.

·  Money markets scaled back expectations for a September Federal Reserve rate hike, with traders pricing in a 44% probability of an increase, down from 55% before the release of the latest data, according to CME Group's FedWatch tool.

•  The Federal Reserve kept interest rates unchanged at its meeting last month, although three of the 12 policymakers dissented, calling for a rate hike.

• Immediate resistance is located at 1.9158(SMA 20), any close above will push the pair towards 1.9205(38.2%fib).

• Immediate support is seen at 1.9077(38.2%fib) and break below could take the pair towards 1.8991(Lower BB).

Recommendation: Good to sell around 1.9100, with stop loss of 1.9150 and target price of 1.9020

 

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