Aussie Extends Gains After Jobs Report


The Australian dollar continues to post gains this week. has punched above the 0.74 line, and is currently trading at 0.7413, up 0.48% on the day. The aussie has not had a losing daily session this week, and the currency is up 1.48% on the week.

Australian jobs within expectations

The Australian employment report for September was nothing to write home about, with a sharp loss in jobs. The number of people fell by 138 thousand, following a decline of 146 thousand. The showed an uptick to 4.6% from 4.5% in August. Investors didn’t punish the Australian dollar, however, as the numbers were within expectations.

The US dollar retreated against the majors on Thursday, with the exception of the struggling . Risk sentiment has risen, fueling equities as well as risk currencies like the Australian dollar, which was currently at a 5-week high against the greenback. The dropped 0.34% on the day, to 93.76. This a result of the strong US overnight, which sent Treasury yields lower. If the index has a daily close below 93.50, that could change the bullish sentiment towards the US dollar.

See also  Aussie Dips On Commodities, Evergrande

The Australian dollar is also sensitive to the key events in China, which posted mixed inflation numbers for September. dipped to 0.7% (YoY), down from 0.8% beforehand. CPI fell to 0.1%, missing the forecast of 0.3%. However, jumped 10.7%, the highest level ever recorded. The aussie was able to shrug off the mixed data from Australia’s largest trading partner.

In the US, the signaled a Fed tapering in November or December. The minutes indicated that the Fed would scale back its bond purchases of USD 120 billion/month gradually, until the program was completely wound up in July. As for a rate hike, earlier in the week, the markets brought forward the pricing of a rate hike from December 2022 to September 2022.

See also  TA: Ethereum Trims Gains, Here’s What Could Trigger A Fresh Rally

AUD/USD Technical

  • AUD/USD broke through resistance at 0.7356 on Wednesday and was testing resistance at 0.7403. Above, we find resistance at 0.7468.
  • The pair has support at 0.7244. Below, there is support at 0.7179.

Original Post

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

See also  Cable Snaps, GBP/USD to 8 Month Lows

Read more here