The Australian Dollar Soars on Strong Employment Figures
The Australian Dollar (AUD) experienced a resurgence against the US Dollar (USD) following the release of impressive labor data on Thursday. The Employment Change in Australia surged by 64.1K in September, reaching a record high of 14.52 million total employment, far exceeding market expectations and showcasing a robust labor market.
Australian Labor Market Highlights
- Australia’s Employment Change increased by 64.1K in September, surpassing expectations.
- The Unemployment Rate remained steady at 4.1% in September, lower than the anticipated 4.2%.
- The number of unemployed individuals decreased by 9.2K, down to 615,700.
On the other hand, the US Dollar (USD) found support from strong labor and inflation data, leading to a more cautious stance by the Federal Reserve (Fed) regarding further interest rate cuts.
Market Expectations and Key Insights
- Traders are eagerly awaiting the US Retail Sales data, with expectations for a 0.3% increase in September.
- The CME FedWatch Tool predicts a 92.1% probability of a 25-basis-point rate cut in November.
- Reserve Bank of Australia (RBA) Deputy Governor Sarah Hunter emphasizes the central bank’s commitment to curbing inflation.
Technical Analysis of AUD/USD Pair
The AUD/USD pair is currently testing the upper boundary of a descending channel around 0.6700. A successful breakout above this level could indicate a shift in momentum from bearish to bullish. However, the 14-day Relative Strength Index (RSI) remains below 50, signaling prevailing bearish sentiment.
Key Levels to Watch
- Support: 0.6622 (eight-week low), 0.6580 (descending channel’s lower boundary)
- Resistance: 0.6729 (nine-day Exponential Moving Average), 0.6800 (psychological barrier level)
Australian Dollar Performance Against Major Currencies
The Australian Dollar (AUD) showed strength against the Swiss Franc, marking notable percentage changes against major currencies today. Market sentiment and economic factors play crucial roles in the AUD’s performance.
Australian Dollar FAQs
Factors Influencing the Australian Dollar
- Interest rates set by the Reserve Bank of Australia (RBA)
- Price of key exports like Iron Ore
- Health of the Chinese economy
- Trade Balance of Australia
Understanding these factors can provide valuable insights into the dynamics of the Australian Dollar and its impact on global financial markets.