Australian Dollar Recovers After Strong Jobs Data
July 17 2024 - 10:51PM
RTTF2
The Australian dollar recovered from recent losses against other
major currencies in the Asian session on Thursday, after data
showed that Australia's employment rose more than expected in June,
signaling a possible rate hike by the Reserve Bank of
Australia.
Data from the Australian Bureau of Statistics showed that the
Australia's employment increased by 50,200 in June, much bigger
than economists' forecast of 20,000.
The participation rate came in at 66.9 percent in June, up from
66.8 percent in May. Further, the employment-to-population ratio
rose by 0.1 percentage point to 64.2 percent, data showed.
Meanwhile, the nation's jobless rate rose slightly to a
seasonally adjusted 4.1 percent in June, while it was expected to
remain unchanged at 4.0 percent.
Crude oil prices rose sharply after data showed an unexpected
sharp drop in U.S. crude inventories last week, while a weaker
dollar also provided support. West Texas Intermediate Crude oil
futures for August rallied $2.09 or 2.6 percent at $82.85 a
barrel.
In the Asian trading now, the Australian dollar rose to 105.48
against the yen and 1.6220 against the euro, from a recent 1-month
low of 104.62 and more than a 1-month low of 1.6284, respectively.
If the aussie extends its uptrend, it is likely to find resistance
around 110.00 against the yen and 1.60 against the euro.
Against the U.S. and the Canadian dollars, the aussie advanced
to 0.6742 and 0.9221 from a recent 2-day low of 0.6715 and a 1-week
low of 0.9189, respectively. On the upside, 0.68 against the
greenback and 0.94 against the loonie are seen as the next
resistance levels for the aussie.
The aussie edged up to 1.1100 against the NZ dollar, from a
recent low of 1.1063. The AUD/NZD pair may test resistance around
the 1.12 region.
Looking ahead, Eurostat releases euro area construction output
for May at 5:00 am ET in the European session.
At 8:15 am ET, the European Central Bank will announce its
monetary policy decision. Markets expect the ECB to keep its key
rates on hold today after cutting the rates for the first time in
five years in June. The main refinancing rate was lowered by 25
basis points to 4.25 percent.
Following the announcement, ECB President Christine Lagarde
holds press conference at 8:45 am ET.
In the New York session, U.S. weekly jobless claims,
Philadelphia Fed manufacturing index for July and U.S. Consumer
Board's leading index for June are slated for release.
AUD vs NZD (FX:AUDNZD)
Forex Chart
From Aug 2024 to Sep 2024
AUD vs NZD (FX:AUDNZD)
Forex Chart
From Sep 2023 to Sep 2024