Australian Dollar Ticks Down On a Mixed Jobs Report
- The Australian Dollar declined a bit after December’s employment report
- Jobs growth increased more than expected but the unemployment rate rose
- Tomorrow’s Chinese GDP figures could offer more volatility for the Aussie
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The Aussie Dollar fell modestly against its major counterparts following the release of a mixed employment report. Australia saw an increase of 13,500 jobs in December versus 10,000 expected and 37,100 in November. Most of these gains were derived from full time positions, which clocked in a 9,300 gain. Part time positions grew by 4,200.
However, the unemployment rate ticked up to 5.8 percent from 5.7 percent in the prior month. Economists were calling for it to remain unchanged. This was the highest reading since January 2016, a one-year high. Perhaps this could be partially explained by looking at the participation rate, which unexpectedly rose to a four-month high of 64.7 percent. More people entering the labor force could have made finding a job more competitive.
Tomorrow, China will release fourth-quarter GDP figures. As DailyFX analyst David Cottle mentioned, renewed hope for China’s overall economic showing in 2016 has helped boost prices for Australia’s raw-material exports. The Australian Dollar could experience more volatility on the outcome considering investors’ penchant for using the currency as a China-proxy bet.
Chart compiled in Tradingview
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