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
Real Time News
  • Forex sentiment analysis can be a useful tool to help traders understand and act on price behavior. Learn how to get the most out of understanding trader sentiment here: https://t.co/rJznrXkcYz https://t.co/Vi2PMPsqg2
  • (Sentiment Weekly) S&P 500, Dow Jones Forecast: Retail Investors Intensify Bearish Exposure, Now What? *And recording of today's webinar in the article link below! #SP500 #DowJones https://www.dailyfx.com/forex/technical/article/special_report/2021/07/28/SP-500-Dow-Jones-Forecast-Retail-Investors-Intensify-Bearish-Exposure-Now-What.html?CHID=9&QPID=917702&utm_source=Twitter&utm_medium=Dubrovsky&utm_campaign=twr https://t.co/p5UmFwBTsg
  • 🇯🇵 Coincident Index Final (MAY) Actual: 92.1 Previous: 95.3 https://www.dailyfx.com/economic-calendar#2021-07-28
  • 🇯🇵 Leading Economic Index Final (MAY) Actual: 102.6 Previous: 103.8 https://www.dailyfx.com/economic-calendar#2021-07-28
  • Heads Up:🇯🇵 Leading Economic Index Final (MAY) due at 05:00 GMT (15min) Previous: 103.8 https://www.dailyfx.com/economic-calendar#2021-07-28
  • Heads Up:🇯🇵 Coincident Index Final (MAY) due at 05:00 GMT (15min) Previous: 95.3 https://www.dailyfx.com/economic-calendar#2021-07-28
  • Crude Oil Prices Risk Forming a “Lower High” on Viral Concerns, Stockpiles Fall https://www.dailyfx.com/forex/market_alert/2021/07/28/Crude-Oil-Prices-Risk-Forming-a-Lower-High-on-Viral-Concerns-Stockpiles-Fall-.html https://t.co/A8H9tICkse
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Silver are long at 94.37%, while traders in Wall Street are at opposite extremes with 75.02%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/8RDJ927lny
  • What is your forex trading style? Take the quiz and find out: https://t.co/YY3ePTpzSI https://t.co/DtSCe17vPg
  • Forex Update: As of 04:00, these are your best and worst performers based on the London trading schedule: 🇨🇦CAD: 0.14% 🇳🇿NZD: 0.04% 🇪🇺EUR: 0.04% 🇦🇺AUD: -0.02% 🇨🇭CHF: -0.03% 🇬🇧GBP: -0.03% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/5vk2L17zcp
Australian Dollar, Full Time Jobs Gain as Unemployment Declines

Australian Dollar, Full Time Jobs Gain as Unemployment Declines

Daniel Dubrovsky, Strategist

Talking Points:

  • Australia added fewer jobs overall but gained more full time positions as unemployment fell
  • The Australian Dollar enjoyed the news and RBA rate hike expectations certainly increased
  • AUD/USD is sitting on top of a rising trend line after breaking below a descending triangle

Just started trading AUD/USD? See our beginner guides to help build your strategy!

The Australian Dollar appreciated against its major counterparts after October’s jobs report. This is despite the fact that Australia added fewer positions overall. In total, the country gained 3.7k titles versus 18.8k expected and 26.6k back in September. This marks the smallest gain this year so far as well as the least since September 2016.

When you look at the details of the data release, Aussie’s gain has a few arguments going for it. First, the country added 24.3k full time positions while losing 20.7k part time jobs. This can be a more favorable outcome as opposed to the direct opposite.

In addition, the unemployment rate fell to 5.4% versus expectations of it holding steady at 5.5%. This is the lowest unemployment rate since January 2013, almost 5 years ago. The labor force participation rate did decline to 65.1% instead of predictions of it staying the same at 65.2%.

Local front-end government bond yields did rally as this announcement crossed the wires. This suggests that the markets interpreted the outcome as more supportive for RBA rate hike expectations. Overnight index swaps are pricing in a better-than-even chance of such an outcome by September next year.

Australian Dollar, Full Time Jobs Gain as Unemployment Declines

On a daily chart, AUD/USD continues heading lower after breaking below a descending triangle on Monday. This puts the 0.7492 completion target closer. Should the pair reverse higher, the former support line of the descending triangle might become new resistance around 0.7640.

In addition, the pair seems to be sitting right on top of a rising support trend line from December 2016 after its daily close on Wednesday. However, if you look back to July 5th and 7th of this year, Wednesday’s low matched the levels seen back then which is around 0.7573.

The intraday IG client sentiment reading for AUD/USD continues showing that traders are further net-long. With that said, a bearish contrarian trading bias still holds. This could mean that AUD/USD might continue lower.

Australian Dollar, Full Time Jobs Gain as Unemployment DeclinesAustralian Dollar, Full Time Jobs Gain as Unemployment Declines

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

DISCLOSURES