First, it signals that US economic momentum is likely slowing. If the US economy joins Europe and China in posting weaker growth, that is a negative for the growth outlook for the global economy and would undermine investor sentiment - meaning weaker equities and commodities ahead.

While the Federal Reserve released a report on Friday showing a continued increase in U.S. consumer credit in the month of February, the increase in credit fell short of economist estimates.

The report showed that consumer credit increased by $8.7 billion in February following a revised increase of $18.6 billion in January. Economists had expected credit to increase by about $12.0 billion compared to the $17.8 billion increase originally reported for the previous month.

The smaller than expected increase in consumer credit came as a drop in revolving credit partly offset an increase in non-revolving credit.

Non-revolving credit such as student loans and car loans rose by $11 billion, while revolving credit, which largely reflects credit card debt, fell by $2.2 billion.

The Fed said consumer credit increased at an annual rate of 4.2 percent in February, as a 7.7 percent increase in non-revolving credit more than offset a 3.3 percent drop in revolving credit.

The material has been provided by Instaforex Company - instaforex.com

U.S. Consumer Credit Rose By $8.7 Billion In February

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The AUD / USD pair has consolidated above 1.0223 Fractal tghough the reversal of a trend is still not obvious. The aussie is still under the negative pressure due to the results of the meeting of the Reserve Bank of Australia that Caused Many worries of investors.

On a technical level we recommend  Buy-deals over the daily fractal with objectives to the downtrend channel. In case of another breakdown we recommend to buy the final target seen at the level 1.0670

The MACD indicator is in oversold area and it is possible to bounce the upward trend.

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The USD/JPY was held below 82.50 heading into the NFP Friday. The 1H chart shows that this was in confluence with a declining trendline, 200 simple moving average, and a reading for 60 for the RSI. Staying below this level shows maintenance of the bearish outlook in the short-term. The NFP missed forecast of 209K badly, with a reading of 120K.

The Non-Farm Payroll came out 120K, badly missing the 209K forecast. This caused risk aversion, which normally gives USD strength. However, this release brings in the conflicting factor that stimulus might be needed (reversing the expectation the FOMC meeting minutes laid out on Wednesday 4/4). Therefore, the market sees the risk aversion more purely in the Japanese Yen.

CHFThe assumed retracement to the key supports was confirmed with conditions for realization of the planned realization of the planned long positions. OsMA trend indicator, being in rising direction, supports preservation of long positions targeting 0,8540/50 and/or further breakout variant up to 0,.

The U.S. currency got an unexpected slap today after fewer-than-forecasted jobs were added to the nonfarm payrolls according the most-anticipated report of the month.Nonfarm payrolls in the U.S. increased 120 thousand in March - an employment figure that is too below the market consensus of 205 thou.

The U.S. Department of Commerce today released March's employment report, showing companies in the U.S. added fewer jobs than in February and an unexpected drop in the jobless rate in the same period.Nonfarm payrolls increased 120 thousand in March, after rising 240 thousand (revised from 227 thousa.

 

Friday was a special day in terms of releases of most important data of the month concerning the non-farm payrolls in the U.S., coinciding with Good Friday, which remains close to all major financial centers worldwide.

If we go back to April 2010 analyzing the data of March, we will see that the current situation is the same. This time employment grew only slightly remaining below expectations though this recovery is considered as stable considering the situation of the last two months. Also it coincided with the first positive figure for job creation since January 2008. If you look at the charts of the following months, this can be considered as one of the worst records during the periods of job losses in recent decades.

This time the situation is different. The U.S. economy is clearly on recovery and even Tim Geithner Treasury Secretary and one of the officials that always support skeptical views of Fed Chairman Ben Bernanke, said on Tuesday that now there is reason to be optimistic.
In March 207,000 jobs were expected to be created, revised from 227,000 in February. A figure, of course, is subject to revision. Also, it is expected that the unemployment rate remains at 8.3%, similar to the previous month though still very high.

The release of breaking news that is expected to create jobs is coming in several minutes though it is not considered as able to affect the situation significantly. But I have to pay much attention to the beginning of the Asian session on Monday, when prices start to settle. The "gaps" logon will be the order of the day providing favorable business opportunities.

Prices, of course, just move. On Thursday the euro continued experiencing multi-days low and touched 1.3030 – a significant support level, while the British pound is still moving within a major uptrend on the daily chart and can fail to break the level 1.5780 .
Meanwhile, an excellent Canadian employment report has boosted the loonie to begin a new bullish trend just before it could lose its gains against the dollar.

The Australian dollar continued to fall and just regaining their positions in these hours trading above 1.03. The main tendency remains bearish as we can see on daily charts. As to the yen that moves within a narrow price range, it does not provide signals at its junction with the dollar in the short term prospective. Nevertheless, the analysis of daily charts allows considering a new growth of the JPY in the coming days.

The material has been provided by Instaforex Company - instaforex.com