The Australian ticked higher against the Pound and US Dollar as investors await the release of Friday’s eagerly anticipated nonfarm payrolls data.
Many economists are forecasting that the data for December will come in below November’s figure and the unemployment rate of 7% will remain unchanged. Usually the ‘Aussie’ would weaken if the report comes in strongly as it would boost the US Dollar.
“A strong jobs report, which would typically boost the US Dollar, could also be good news for the Australian unit. The US Federal Reserve is being guided by the US labour market outlook on its march towards the end of quantitative easing.
‘A strong jobs figure would build the case for more aggressive stimulus cuts from the Central Bank compared with the currently anticipated $10 billion a month, which in turn would be bullish for the US Dollar. A positive reading also bodes well for global growth and may create demand for the Aussie as a high-yielding currency,” said an FXCM market analyst.
Ahead of the jobs report the markets are typically quiet but once the report is released it is expected to take off.
The ‘Aussie’ found support early in the session after data out of China, Australia’s biggest trading partner showed that imports into the country grew by 8.3%.
Looking ahead to next week we will see data released on Australia’s job market. Any rise in the nation’s unemployment rate will increase speculation that the Reserve Bank of Australia has scope to lower interest rates further.
With its benchmark cash rate already at a record low 2.50%, the RBA has signalled it would be reluctant to cut further. Still, RBA Governor Glen Stevens said in December the door is still open to a further cut if economic circumstances warrant it.
Current Australian Dollar Exchange (AUD) Rates
< Lower > Higher
The Australian Dollar/US Dollar Exchange Rate is currently in the region of: 0.8896 >
The Australian Dollar/Euro Exchange Rate is currently in the region of: 0.6539 >
The Australian Dollar/Pound Sterling Exchange Rate is currently in the region of: 0.5422 >
The Australian Dollar/ New Zealand Dollar Exchange Rate is currently in the region of: 1.0805 >
The US Dollar/Australian Dollar Exchange Rate is currently in the region of: 1.1239 <
The Euro/Australian Dollar Exchange Rate is currently in the region of: 1.5290 <
The Pound Sterling /Australian Dollar Exchange Rate is currently in the region of: 1.8448 <
The New Zealand Dollar/Australian Dollar Exchange Rate is currently in the region of: 0.9255 <
Correct as of 09:30 am GMT
Comments are closed.