US Initial Jobless Claims Continue to Impress
THE TAKEAWAY: US Initial Jobless Claims (AUG 1) > 326K versus 345K expected, from 345K ( revised higher from 343K) > Economic outlook remains positive > AUDUSD BEARISH
US Initial Jobless Claims for the week ending July 27 showed an upward revision, with the weekly figure declining to 326K following a 345K (revised) advance the week prior. This downward tick beat Bloomberg economic forecasts of 345K, with the headline coming in at its lowest level in 5 years.
This downward showing may further conviction that the US labor market is indeed improving, adding to lingering speculation that the Fed may taper their asset purchasing program come September.
Following the release, the AUD/USD declined nearly -80 pips to 0.89114 signifying a new low in yearly trading. The pair remains to be in a long-term downward trend dating back to April reinforcing bearish sentiment and currently seems to be taking back some losses with a rebound of nearly +35 pips after achieving a new low.
--Written by Jonathan DePaolis, DailyFX Research
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