The Australian dollar remains under pressure today after last Friday’s stellar jobs figures from the US and yesterday’s disappointing figures out of China.
AT 5pm (GMT) the Aussie dollar was trading at US70.42c after reaching a high of US71.69c in Fridays trade.
The non-Farm payrolls figure from the US showed the economy added 271,000 new jobs last month, which was well above expectations, while the unemployment rate hit the market at 5 percent, slightly lower than forecasts for a number 5.1 percent.
The Jobless figure in the US is now sitting at its lowest level since 2008.
Immediately after the news, the US dollar jumped, along with the chances of a rate hike from the US Federal Reserve with analysts now pricing in a 70 percent chance that the central bank will lift rates by the end of the year.
In another blow to the Australian dollar, data out of China yesterday showed that exports dropped 6.9 percent in October against analysts’ expectations of a 3 percent fall, while the imports figure fell 18 percent against expectations of a 16 percent drop leaving a record trade surplus of $61.6 billion.
With an interest rate cut in the US now all but priced into the market, the Aussie dollar is likely to find strong support at the US 70c level with a strong resistance point at around the US71.20c mark.
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