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Non-farms will dictate sentiment

Four markets in focus today: AUD/USD, USD/JPY, Spot gold and Carsales.com.

AUD/USD

AUD/USD finally knocked out a barrier in the 0.908 region after having struggled in that region for weeks. The pair traded as high as 0.9114 after a string of positive local releases encouraged sentiment. Focus now switches to Glenn Stevens testimony before the House Economic Committee at 9.30 AEDT, which has been pinned as the key event of the week for the AUD.

Given Tuesday’s statement already made an attempt to talk the AUD low, chances are Stevens will be looking to continue with this rhetoric. Further jawboning could send the AUD lower and see support in the 0.90 region tested again. China will release trade balance and CPI data over the weekend and this along with the non-farm payrolls report will help shape sentiment for Monday.

USD/JPY

Yen weakness continued overnight while the greenback was supported by some encouraging economic data. As a result USD/JPY is back above 103 with the yen being used as a funding currency again. The trend is likely to continue in the short term but the key will be the non-farm payrolls release. A strong reading could push the pair higher.

Spot gold

The precious metal managed to post some gains overnight as Crimea said it will hold a referendum on 16 March on whether to join the Russian Federation or not. That could be the next talking point as the international community seems to be against this move. This might keep gold bid in the near term.

Carsales.com

The stock has had a big moved over the past 24-hours driven by the Korean acquisition. The market has been quite bullish on the move and this could see momentum remain to the upside in the short term. After a spike yesterday, the stock pulled back into the close and this might encourage fresh buying.

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