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Aussie Dollar is Buoyed After Robust Jobs Report

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Aussie Dollar is Buoyed After Robust Jobs Report

The Australian dollar held steady after testing the recent lows as a better than expected employment report helped buoy the currency from down under. Obama nominated Stanley Fischer to replaced Janet Yellen as the Fed Vice Chairman, Eurozone Industrial production printed slight below expectations.

Australia created 21,000 jobs in November, twice what the market expected, though the October series was revised lower to show a small loss of jobs from a small gain. Full time positions rose by 15.5k, recovering about half October’s loss. The unemployment rate ticked up to 5.8% from 5.7%, though the participation rate remained steady. Separately, Australia reported consumer inflation expectations ticked up to 2.1% in December from 1.9%.

Former Bank of Israel Governor Stanley Fischer has reportedly accepted an offer to become the Vice Chairman of the Federal Reserve. Fischer is a strong believer in the power of the Federal Reserve and stated last month that without the Fed the US economy would be in much worse shape.

Eurozone industrial output surprisingly declined and was worse than expected. The eurozone’s recovery continues to remain soft, with industrial production dropping 1.1% month over month in October after falling 0.2% in September and missing consensus for a rise of 0.3%. Year over year, output increased 0.2%, as in September, but came in well below forecasts of 1.1%.

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The Australian dollar attempted to make a new low for the move but the stronger than expected data help the currency remain buoyed. Resistance on the AUDUSD is seen near the 10-day moving average near 0.9090. Momentum on the currency pair is flat as the MACD (moving average convergence divergence) index is printing near the zero index level. The RSI (relative strength index) is printing near 37, which is at the lower end of the neutral range.

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