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
Oil - US Crude
Bullish
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
More View more
Forex News: Aussie Sold on Softening Labor Market

Forex News: Aussie Sold on Softening Labor Market

Gary Kerdus,

THE TAKEAWAY: Australian labor market weakened in December > Diminished labor growth prospects may prompt policy officials to reduce interest rates > Aussie traded lower

The Australian dollar continued the move lower versus the Canadian dollar as the Aussie unemployment rate increased to 5.4 percent in December, up from 5.3 percent in November. At 0:30 GMT today the newswires reported that the Australian economy shed 13,800 full time staffers and added 8,300 part time workers. On net, 5,500 workers found themselves without pay in December.

A weakening labor market may prompt central bank policy officials to reduce the cost of borrowing in an attempt spur economic growth and bolster jobs growth. Forex traders likely sold the higher-yielding currency as the prospect of reduced interest rates in the future may diminish the attractiveness for earning interest on carry-trade positions.

The AUD/CAD currency pair began to trade lower prior to the employment release as price appeared to be near a potential level of resistance on a daily chart around the 1.0440 area. Potential support could be established around the 1.0268 area if bearish pressure continues to build and price breaks lower.

AUD/CAD, 15 Minute Chart

Forex_News_Aussie_Sold_on_Softening_Labor_Market_body_Picture_4.png, Forex News: Aussie Sold on Softening Labor Market

AUD/CAD, Daily Chart

Forex_News_Aussie_Sold_on_Softening_Labor_Market_body_Picture_7.png, Forex News: Aussie Sold on Softening Labor Market

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

DISCLOSURES