Global equities higher, Aussie dollar recovers from unemployment figure [focus on AUD today], oil higher, ASX futures 30 points higher

The Australian dollar is proving surprisingly robust of late. At first you might think I have pointlessly posted images of the same event in the first two charts; however, have a closer look at the dates. The first shows the effect that the Reserve Bank of Australia's (RBA) February interest rate cut had on the AUDUSD currency pair, which traders in the European and American time zones then bid back up to recover to pre-cut levels. In a remarkably similar fashion, the same thing happened last night. Rather than digesting the poor Australian employment report and jumping on the bandwagon by selling the AUDUSD currency pair, traders overnight did the opposite - taking a lead from rallying equity markets and a broad risk-on move, the AUDUSD not only recovered but is now trading at a level higher than it was prior to yesterday's release of a 6.4% unemployment rate, versus expectations of 6.2%.

Although Australia has room to move in relatively larger steps than much of the developed world with regard to interest rate cuts, could it be that our absolute level of 2%+ interest rates is more attractive on an outright basis than the deterrent of a further 25 basis point cuts? Given that following yesterday's employment announcement the market is now pricing in a whopping 73% chance of a further cut to 2.00% in March, traders are clearly focused on the fact that monetary easing in Europe is at a point of desperation and even with another 25 basis point cut in the wings, Australia's AUD is still looking relatively good.

Today's third chart shows the AUDUSD in daily candlesticks, and while we've had some intra-day lows in the past 10 days as low as US$0.7626, for now the pair is still trading sideways and while being fed every excuse to sell-off (a rate cut, poor unemployment rate, another rate cut priced in for March), it has not yet begun to trend lower.

Looking at the other side of this pair, the US copped some poor retail sales figures last night and the on-again/off-again opinion of traders with regard to the much anticipated 2015 Fed rate hike seem to be in 'off again' mode, which would have assisted US equities in moving higher last night.

Today‚Äôs charts are taken from the Rivkin Trader platform. 30,000 global instruments available to trade including FX, commodities, index, ETFs and international shares. Trade Australian share CFDs from just $8 or 0.10%. Click here or phone 1300 748 546 to get your free $100,000 demo account.

Upcoming economic announcements: Japanese foreign asset purchases at 10:50am, Eurozone GDP at 9pm, University of Michigan confidence survey at 2am, all Sydney time.

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