Matt Simpson

Another strong NFP report sent AUD/USD to a 4-year low on Friday, which was already under pressure following renewed bets of RBA cuts thanks to a soft CPI print for Australia. AU jobs and US CPI are the key data points for Aussie traders this week.

I doubt we’ll be seeing too much weakness in December’s NFP figures later today, and that could prompt another bid for the USD. But with Trump likely to revive his disdain for a strong dollar, perhaps a pullback is not too far away.

While I suspect gold is in for another good year, the gains seen so far in January wreak of a false initial move to my eyes. And with NFP potentially knocking out decent figures, I’m on the hunt for a swing high.

Bond yields and AUD/USD had a different take on today's inflation figures. And on this occasion, I believe forex traders are in the right. And if the Aussie can withstand the strength of the US dollar, it could bode well for bears seeking a cheeky EUR/AUD short.

The ASX 200 looks like it could be setting up for a dip lower, but whether it is a big or small dip is likely down to whether Wall Street holds above its December lows.