FXstreet.com (Barcelona) - The Aussie dollar is partially recovering earlier losses, after poor domestic employment figures dragged the AUD below the key support at 1.0500; recall that the jobless rate in Australia up ticked to 5.4% during December, and the change in the employment fell by 5.5K after rising by 17.1K in the previous month.

“Employment was down 5.5K in December… At the same time, “other foreign exchange transactions” – a measure of central-bank intervention - conducted by the RBA declined markedly… The drop comes after the RBA seemingly stepped up intervention to curb AUD strength over the autumn and hints that the RBA is not looking to go further down the intervention route to stimulate the non-mining sector. This leaves the cash target rate as the main tool and we look for the RBA to deliver at least two more 25bp cuts on a 12M horizon”, assessed C.Tuxen, Senior Analyst at Danske Bank.