News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site. See our updated Privacy Policy here.

0

Notifications

Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
Subscribe
Please try again
More View more
Labor Gains May Provide Relief, Aussie Rallies

Labor Gains May Provide Relief, Aussie Rallies

Gary Kerdus,

THE TAKEAWAY: Australian labor market posts better than expected job gains > The heavily sold currency may find short lived relief as markets price in additional rate cuts > AUDCAD trades higher

The Australian Dollar traded higher versus its major counterparts as the Aussie economy added 14,500 new jobs in September, beating expectations set at 5,000. The unemployment rate notched slightly higher to 5.4 percent from 5.3 percent likely due to an uptick in the participation rate despite the solid job gains. The full time work force increased by 32,000 positions while part time staffers lost 17,700 jobs.

Traders likely interpret today’s data as reason to unwind short interest as the Aussie currency has been under pressure against the Canadian Dollar since August 8 on the backdrop of a weakened fundamental outlook in Chinese industrial activity which may exert unwelcomed pressure on Australian exports.

The rally may be short lived as traders appear to have priced in a 70 percent probability of another 25 basis point reduction in rates by the Reserve Bank of Australia on November 6.

AUD/CAD, 1 Minute Chart

Labor_Gains_May_Provide_Relief_From_Recent_Selling_Pressure_Aussie_Rallies_body_Picture_1.png, Labor Gains May Provide Relief, Aussie Rallies

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES