The AUD/USD has jumped this morning on word of a stronger than anticipated jobs number.
There are a number of beats in the report so it is pleasing on a number of fronts. The headlines of +32.8L jobs for the last month is a big win. While the unemployment rate hitting 5%, when it was expected to be higher is a strong one.
It’s also the number that will run on the nightly news.
At the same time the number of full time jobs increased. This is a really good sign of the overall strength of the economy and the one that might please the RBA most of all.
In reality, we are now honing in on the 0.7300 level and I’m personally not looking to fade this strength.
As mentioned, the real test comes as we test 0.7300. Can we make a new high or not?
If we put in a lower high today, that is a sign of weakness. If we crack and hold 0.7300, I’d expect more strength ahead.
This is a strong report and a kick the Australian economy really needed.