AUD/USD Jumps To Near 0.6380 On Better-Than-Expected Aussie Employment
Image Source: Unsplash
- AUD/USD advances to near 0.6380 as upbeat Aussie employment data is likely to force traders to pare RBA dovish bets.
- On Tuesday, the RBA cut its OCR by 25 bps to 4.10%, the first interest rate cut in more than four years.
- Higher US Initial Jobless Claims have weighed further on the US Dollar.
The AUD/USD pair posts a fresh two-month high near 0.6380 in Thursday’s European session. The Aussie pair is 0.6% higher as the Australian Dollar (AUD) performs strongly across the board, except the Japanese Yen (JPY), after the release of the better-than-projected Australian labor market data for January.
The Australian Bureau of Statistics reported that the economy added 44K workers, more than double expectations of 20K but lower than the 60K addition seen in December. The Unemployment Rate accelerated to 4.1%, as expected, from 4% in the previous month.
Upbeat Aussie employment data adds to expectations that the Reserve Bank of Australia (RBA) will remain cautious about further policy easing. On Tuesday, the RBA announced its first-ever interest rate cut decision since November 2020 but cleared that the battle against inflation is not over yet. The RBA guided a cautious stance on interest rate cuts after reducing its Official Cash Rate (OCR) by 25 basis points (bps) to 4.10%.
Meanwhile, a sharp weakness in the US Dollar has also strengthened the Aussie pair. The US Dollar Index (DXY), which tracks the Greenback’s value against six major currencies, slumps to near 106.75.
Earlier in the day, the Greenback was already underperforming, slightly higher-than-expected United States (US) Initial Jobless Claims data for the week ending February 14 has weighed further. The Department of Labor reported that individuals claiming jobless benefits for the first time were 219K, higher than estimates of 215K.
More By This Author:
EUR/USD Rises As Risk-Premium Of US Dollar DiminishesUSD/JPY Ticks Lower To Near 151.90 Despite Some Strength In US Dollar
USD/CHF Price Forecast: Extends Winning Streak For Fourth Trading Day
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not ...
more
Comments
