The NFP Data Caused a Market Disturbance, but Only Briefly

As usual the NFP caused a market disturbance in the first Friday of the month (although this time they were announced on the second Friday).

As analysts predicted, they were positive for the American economy, even more positive than what was expected.

While some currency pairs reacted by moving in a set direction (such as USD/CAD), others simply formed whipsaws, for example EUR/USD and AUD/USD.

AUD/USD was especially interesting for me today, because despite the strong positive data it first dropped in favour of the USD in the first minutes after the news came out, after which it immediately started climbing in favour of the Australian currency. That once again supported my conviction that the important economic data is more of a catalyst, rather than the main reason for currency pairs moving in a predefined direction.

Regarding AUD/USD  - despite the sharp drops the pair once again started moving in the direction I actually already discussed in my last post>>>, i.e. it began a corrective movement to the upside. It seems that no news about economic data can stop this predefined movement in the mid- or long-term.