AUD/USD: Australia’s unemployment rate remained steady in August, job growth surged the most in nearly 2 years in the same month


AUDUSD Movement

For the 24 hours to 23:00 GMT, the AUD declined 0.42% against the USD and closed at 0.7985.

LME Copper prices declined 1.1% or $74.5/MT to $6527.0/MT. Aluminium prices traded flat at $2083.0/MT.

In the Asian session, at GMT0300, the pair is trading at 0.8005, with the AUD trading 0.25% higher against the USD from yesterday’s close, following robust Australian jobs report.

Early morning data indicated that Australia’s seasonally adjusted unemployment rate remained unchanged at 5.6% in August, meeting market expectations. Further, the number of people employed in Australia climbed by 54.2K in August, recording the biggest jump since October 2015 and following a revised advance of 29.3K in the previous month. Meanwhile, markets had anticipated the number of people employed to advance 20.0K.

On the contrary, the nation’s consumer inflation expectations declined to 3.8% in September, after recording a level of 4.2% in the previous month.

Elsewhere in China, Australia’s largest trading partner, industrial production climbed 6.0% on an annual basis in August, rising at its weakest pace in nine months and undershooting market expectations for a rise of 6.6%. In the previous month, industrial production had recorded a rise of 6.4%. Moreover, the nation’s retail sales posted its slowest rise in six months, after it climbed 10.1% YoY in August, compared to market consensus for a rise of 10.5%. In the previous month, retail sales had recorded a rise of 10.4%.

The pair is expected to find support at 0.7969, and a fall through could take it to the next support level of 0.7934. The pair is expected to find its first resistance at 0.8042, and a rise through could take it to the next resistance level of 0.8080.

The currency pair is showing convergence with its 20 Hr moving average and trading below its 50 Hr moving average.

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