Jobs data boosts Australian dollar

Financial and commodity markets analytics

The Australian dollar continued its strength today after strong local data and riding on the back of yesterday’s US Federal Reserve Interest rate decision and dovish monetary policy statement..

At 6.53pm (GMT) the Aussie dollar was trading at US76.48c up from a low of US74.15c in yesterday’s trade.

The unemployment rate in Australia dropped from 6.0 percent to 5.8 percent in today’s trading session, reversing the trend from last month and sending the Australian dollar higher.

Many, like analysts from ANZ bank noted that the stable jobs market may be enough for the RBA to hold fire on rates for the foreseeable future,

“The decline in the unemployment rate to 5.8 per cent suggests that underlying conditions in the labour market remain relatively healthy and will be sufficient to keep the Reserve Bank of Australia on the sidelines for the time being." the bank said.

Even comment from assistant RBA governor Guy Debelle who said that the Australian dollar should be lower didn’t stop the currency’s rise,

Most central banks want lower currencies, for pushing up inflation or creating a bit more activity,” he noted after seminar in Sydney.



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