FXStreet (Bali) – AUD/USD spiked all the way to 0.7790s after a much better-than-expected Australian jobs report, worth over 80 pips from 0.7710 session low, where the pop originated from.
Australia’s employment figures surprise to the upside
Australia’s employment figures came much better-than-expected – around 15 expected -, tripling estimates, with the total employment change at 42k, 27.3k being part-time jobs and 14.7k full-time positions. The jobless rate was also reduced to 6% vs 6.1% prior (revised from 6.2%), while the participation rate was unchanged at 64.7% after a revision last month from 64.8%.
AUD/USD: Resistance at 0.78 a hard nut to crack
AUD/USD should find it quite challenging to overcome the 0.78 handle. In favour, bulls are being backed up by improving technicals and growing evidence of the Australian jobs market not looking as doomed as the RBA may have anticipated. Iron ore rallies also provide a positive input for the Aussie. On the flip side, expectations for an early rate hike by the Fed, increasing implied volatility in AUD/USD – rises hard to be sustained under current measures – and the RBA adamant to abandon its dovish rhetoric, should see the upside in the rate well capped.
(Market News Provided by FXstreet)