The Australian dollar is trading higher today brushing of disappointing job numbers released in early morning trade.
At 7.22pm (GMT) the Aussie dollar was trading at US73.28c up from US71.98c in yesterdays close.
Although the unemployment rate in Australia dropped from 6.3% to 6.2%, the number of full time jobs fell by 13,900, well below expectations, but were partially offset by a rise in part time employment by 8,900.
The weak figures, along with yesterday’s decision from Westpac, one of Australia’s leading banks to lift the rates they charge for home loans by 20 basis points, is seen by many as an underlying reason for the RBA to cut rates by the end of the year.
This is sure to weigh on the Australian dollar as mortgage debt is one of the biggest drags on the economy, and along with unemployment sitting at an 8 year high and jobs being lost the outlook for the local economy is grim.
Australia has failed to make the transition after the end of the mining boom as demand from China dries up and the price of Australia’s biggest export, Iron ore sits at multi year lows with support not likely to pick up in the nearest future.
On the technical side, the Australian dollar may head back towards the US74c mark where it met resistance around the US73.60 level and we expect this to hold up again with a potential short trade around the 73.80c mark.
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