On the verge of employment report for April which is to be released tomorrow. The yearly pace of involuntary separation has been sluggish piercingly to 6.4% in March as per the challenger job cut data announcements. A further easing in today's release would strike with a solid hike in nonfarm payrolls from an unexpectedly tepid 126 k rise in March. But for today's US calendar is light.
Initial jobless claims are expected to continue their broad downward trend. Although wait & watch mode is ahead of US NFP and China foreign trade data tomorrow, the safeguarding techniques can be deployed upfront by international traders.
Technical & Derivatives watch:
Technically, AUD/USD is in tight range of 0.7925-0.8005 levels. Weak employment data shrugged off as spot rebounds from 0.7925 low back over 0.8000.
For intraday traders of USDJPY eying on for speculation can add short positions in this month futures contracts. And traders of dollars having exposure with Aussie dollar can have long positions in futures.
If there exists a divergence in spot & futures price at expiry, then arbitrage profits can be made by buying futures and selling in spot if Futures is at discount to Spot and vice-versa if Futures is at premium to Spot.
