The Aussie suffered another set back on Friday as the US employment figures

The Aussie suffered another set back on Friday as the US employment figures came in almost 100k better than expected.

After closing onshore around 0.7790 the Aussie held up well as it awaited the US employment data. With the release of the data the Aussie fell almost half a cent in a couple of minutes. It finally found support around 0.7745 and looked to rebuild from there but without enough enthusiasm to do so, it spent the rest of the session trying not to slip any further. This morning the Aussie opened under domestic selling pressure, trading around 0.7735.

Most of cross rates have opened around similar levels to Friday as the other majors also struggled against the US data. The one currency that traded its own line was the Euro. With recent comments on how bad the European economy is and the relative growth its managing compared to the US economy, the Euro slipped further than any other currency against the greenback. This saw our cross rate actually gain 50 points on Friday night. Unfortunately domestic selling of the Aussie this morning is seeing our Euro cross lower as well.

This weekend we have a number of important releases that will get the Aussie moving. Today’s ANZ job ads will give some lead to the expected outcome of the employment data on Thursday. Tomorrow’s budget shouldn’t have too much effect. Thursday’s employment and consumer inflation figures will see the Aussie possibly back towards 0.7800. Offshore the US Trade Balance on Thursday will be there main focus of the markets this week. Another increase in the deficit will see the greenback struggling again.

Today the Aussie will do its best to regain the 0.7750 level in preparation for the important data later in the week.