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.

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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.

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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.

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