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.

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
EUR/USD
Mixed
Oil - US Crude
Bullish
Wall Street
Mixed
Gold
Bullish
GBP/USD
Mixed
USD/JPY
Bearish
More View more
Real Time News
  • Heads Up:🇬🇧 BoE Gov Bailey Speech due at 17:00 GMT (15min) https://www.dailyfx.com/economic-calendar#2021-01-20
  • $EURCAD fell from around 1.5440 to around 1.5300, hitting its lowest level since early July, following no change to BoC's policy and a press conference from BoC Gov. Macklem. $EUR $CAD https://t.co/UUmfalRbef
  • $EURUSD is bouncing between well-established technical levels - to the upside the midpoint of the pair's historical range and head-and-shoulders neckline. Downside, 38.2% Fib of past three months run and 50 DMA https://t.co/v5Ly5Ctnvj
  • BoC Governor Macklem: - Rise in Canadian Dollar does pose some risk - We don't target the Canadian Dollar - Most appreciation in Canadian Dollar is coming from broad-based depreciation of US Dollar #BoC $CAD
  • BoC Governor Macklem - Micro-cut is one option available to the BoC - If we see further appreciation of CAD that will become more of a headwind and that presents downward risk to our projections $CAD
  • BoC Governor Macklem: - We could increase pace or shift composition of QE purchases - Yield curve control is an option - BoC reviews the full range of options and will use these options if necessary #BoC $CAD
  • Hey traders! Get your Wednesday market update from @DailyFX Chief Strategist @JohnKicklighter 👇. He covers the US Presidential inauguration and more! https://t.co/McN3A0yC2F
  • BoC Governor Macklem: - Adjustment of QE purchases will be "a gradual process," not "a switch" - QE programs will be needed for some time #BoC $CAD
  • BoC Governor Macklem: - Exceptional degree of monetary stimulus currently in place is appropriate - Prepared to use options as needed if economic recovery is weaker than expected - QE stimulus will diminish over time if economy and inflation are stronger than projected #BoC $CAD
  • BoC Governor Macklem: - BoC has options if economy proves weaker than expected - BoC spent a good bit of time discussing stimulus amount #BoC $CAD
Aussie Dollar Brushes Off Jobs Report, Follows Risk Trends Lower

Aussie Dollar Brushes Off Jobs Report, Follows Risk Trends Lower

Daniel Dubrovsky, Analyst

Talking Points

  • Australian Dollar little changed as May’s jobs report crossed the wires
  • Australia added 17,900 positions versus 15,000 estimated by economists
  • AUD/USD follows ASX 200 futures lower in the aftermath of the data

The Aussie Dollar initially saw a small reaction against its major counterparts after Australia’s employment report crossed the wires. The data showed that 17,900 jobs were created in May, which was better than the 15,000 gain expected.

All of the positions added came from the part-time sector. There were no gains or losses from the full-time portion. The unemployment rate held steady at 5.7 percent as expected. While an increase in the participation rate to 64.9 percent was forecasted, it remained unchanged at 64.8 percent as it was in April.

Australian front-end government bond yields saw a limited reaction as well. This could have been a result of the markets interpreting the data to have a minor impact to the Reserve Bank of Australia’s outlook on monetary policy. Indeed, the RBA went into a wait-and-see approach in its most recent policy announcement. The central bank believes rates are where they should be in order for CPI and sustainable growth to return to its longer-term target.

The Aussie’s decline in the aftermath of the jobs report can likely be traced to it following shares lower. Being a sentiment-linked currency, the AUD/USD declined alongside ASX 200 futures, as can be seen in the chart below. Meanwhile, the DailyFX Speculative Sentiment Index (SSI) is showing a narrowly positive reading. The SSI is a contrarian indicator, implying further AUD/USD weakness ahead.

Want to learn more about the DailyFX SSI indicator? Click here to watch a tutorial.

Aussie Dollar Brushes Off Jobs Report, Follows Risk Trends LowerAussie Dollar Brushes Off Jobs Report, Follows Risk Trends Lower

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

DISCLOSURES