There’s Hope for the USD as Unemployment Claims Fall
The US employment sector has been one of the strongest during these times of economic hardship across the world. It has shown low jobless claims while new jobs continue to grow at a decent pace. This has been keeping the US consumer demand strong, thus helping the economy avoid recession.
Although, we have seen some dents here and there, with the data missing expectations, but things have come back to normal pretty fast. Unemployment claims were showing an increase in the previous week, which got traders worried, but yesterday’s unemployment claims report calmed the sentiment and helped balance the negative effect on the USD by the miss in the durable goods orders.
The Labor Department reported Wednesday that jobless claims dropped by 24K to 209K, which shows that they continue to be historically low, indicating that most US citizens have unusual employment stability. The previous week’s total of 233K had been the highest since August. The four-week moving average of claims, which smooths out week-to-week volatility, fell by 750 to 220K.
Since March 2022, the FED has raised interest rates 11 times to slow the economy and curb inflation, which reached a four-decade high last year. The labor market and economic growth have been remarkably resilient, confounding predictions that the economy would enter a slump this year.
Risk sentiment remains positive as a result, which is benefiting risk currencies such as the AUD. While stock markets have turned positive since the end of October, and bond yields have declined, commodity dollars have made a big upward reversal, which has lasted about a month.
Nonetheless, crude Oil is not benefiting from the positive sentiment, as OPEC has postponed it’s meeting to the end of this month, after confusion and arguing within the cartel, with most countries wanting to increase production to help with more income in these times of crisis, but Saudi Arabia insists to push the production cuts of1 million barrels until the end of this year. We have opened two sell Oil signals as the selling pressure remains strong in crude Oil.
AUD/USD Live Chart
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