How to Trade the Jobs Report

Sydney, Australia.
Sydney, Australia.

Ready for the nonfarm payroll report? Forecasters are expecting respectable job growth, and Amelia Bourdeau agrees.

Bourdeau, director of foreign exchange at Westpac Institutional Bank, sees the payroll report coming in close to the consensus forecast, around 150,000, and that is giving her a trading idea: "I think that will mean that this is a chance to buy the dip in the Australian dollar," she told CNBC's Melissa Lee.

A decent jobs report will give U.S. stocks a lift, Bourdeau says, and "that will also take Aussie dollar up with it."

Bourdeau recommends buying the Australian dollar against the U.S. dollar at 1.0460 with a target of 1.0620 and a stop at 1.0380.

"This is a very tight stop, a very short-term trade," she warns.

Bourdeau's recommendation comes after the dollar strengthened on reports that the Federal Reserve could end its asset purchases in 2013. She is skeptical that that prospect will continue to lift the dollar. "I think we need more data in order to see if that's going to come to pass, meaning if they are going to stop asset purchases at the end of 2013."

Tune In: CNBC's "Money in Motion Currency Trading" airs on Fridays at 5:30pm and repeats on Saturdays at 7pm.

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