The AUD/USD Jumps as the Unemployment Rate Dips
Rowan Crosby • 1 min read
The AUD/USD has jumped on a better than expected change in the unemployment rate.
The rate has dropped to 4.9% from 5.0% previously and expected. However, we did see a miss in the number of new jobs created last month with just +4.6K vs 15K exp.
There is always some controversy as to which number is actually more important. But at the end of the day, the unemployment rate will be the one that plays on the nightly news.
Employment has been a reasonably strong area of the Australian economy so far while many other data points have really been weak.
The AUD/USD] has spiked higher and through the 0.7150 level, however, whether this can hold will be the interesting point of the session.
The Aussie got a big lift overnight thanks to the dovish update from the FOMC along with the other majors.
We have a fair bit of resistance overhead, particularly at the 0.7200 area so it will be interesting to see if there is much more upside.
The USD fall was not unexpected, but we still have to remember that the RBA is feeling a fair bit of pressure to cut rates while the FOMC are in a far stronger position regardless of the latest update.