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DAY 3 - NON FARM PAYROLL NEWS EVENT

Recent economic data from US fell short of market expectations, as such all eyes are now NFP numbers, which is due tomorrow. Analysts expect around 180k new jobs creation and wage growth of around 0.3%.
In recent months job numbers remain quite inconsistent, however last month's numbers of 222K have hinted that business remain optimistic about future growth as they continue to hire.
US stock market is posting all time highs, as such general sentiment remain bullish.
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EURo trades to the highest since U.S. election

Euro rose to the highest level since U.S. election after weaker than expected NFP report on Friday. The report was still seen as decent enough to support Fed hike on June 14th. The bank is now officially in a blackout period ahead of the meeting.
The pair accelerated its uptrend after breaking above 200 DMA following the first round of the French election. It the broke above the six-month channel in May. Upper channel line is now acting as a support. 1.13 - 1.135 area is the next target.
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Aussie rallies from the December low

Australian Building Approvals for November came in better than expected overnight. Positive Chinese business sentiment and stabilization in yuan is also what has contributed to the recent strength in the Aussie.
From just below 0.7160 in December, the pair rose to 0.7355 before Friday's U.S. NFP report. 50 DMA is the next target and then 0.7450 - 0.75 band. Stronger demand may be waiting near 0.7250.
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Potential for a risk-on week

June's NFP report showed that the figure for May was just a fluke and that the U.S. jobs market is still strong. Having said that, its performance graduated somewhat over the past year which is in line with diminishing slack in the market.
Immediate reaction was to buy the dollar but, after few whipsaws, prices mostly settled near pre-release levels, with a slight risk-on bias. Talking about risk-on, S&P 500 futures posted a new all time high overnight, barely two weeks after Brexit.
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USD/JPY looks supported

There was little follow through after the sharp fall on NFP report earlier in the month but USD/JPY did make a new low and has continued to look heavy amid recent flight to safety. Having said that, lower tails on daily candles suggest a decent buying interest.
With the FOMC meeting scheduled for today's evening and the BOJ's for tomorrow morning, the pair will likely remain range-bound today. Area between 105 and 106 (includes June and May lows and 200 WMA) shall protect the downside while 107 …
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Swiss franc benefits from safe haven flows

Swissie has been one of the big movers in the past few days. There were no particular drivers cited but U.S. dollar weakness after Friday's NFP report and flight to safety in the run up to UK EU referendum are certainly two of them.
The pair lost 250 pips in three days and more than 300 from the top, set in May near 0.9950. It is back below the three daily moving averages and is currently testing 2011 - 2016 trendline with 100 WMA (0.9625) just below. 50 DMA is the initial resistance.
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U.S. dollar reclaims some ground overnight

Friday's move after much weaker than expected NFP report may have been a bit overdone and the U.S. dollar started to retrace some of its losses in the Asian session. Aussie and Cable were the two that gave back the most with the latter selling off on renewed Brexit worries.
There was little movement in the Euro and the Swissie while the Yen, the Loonie and the Kiwi gave back around 50 pips each. We won't have to wait for too long to see a reaction of European traders to the aforementioned report…
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Kiwi at 50 DMA

Kiwi touched below 0.65 on Friday after U.S. Bureau of Labor Statistics published surprisingly strong September Non-farm Payroll Report. There was no follow through today and the pair recovered some of its losses as the dollar was sold across the board.
The area between 50 DMA (currently ~0.6530) and 0.65 level is providing support at the moment. If it gives way, we could see another cent or so decline over the next few days. If it holds, we may witness a retest of 0.67 - 0.68 and perhaps even a…
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