AUD falls against disappointing employment data
|AUD - Australian Dollar
The AUD saw a decline against the USD during yesterday’s trade session due to employment data coming in lower than expected. Released monthly, while Australian employment data was stronger last month, it was not enough to foresee the enlarged number of jobseekers in the market, pushing the unemployment rate up to 5.3% from 5.2%.
In terms of macroeconomic news, RBA Governor Lowe has scheduled a speech next week Tuesday evening. As head of the central bank that controls short term interest rates, he has more influence over the nation’s currency value than any other person. His speech will be scrutinized by traders, as it is often used to drop subtle clues regarding Australia’s future monetary policy.
The AUD opened at 0.6794 against the USD this morning.
Key Movers
The US Federal Reserve cut the interest rate on a 7-3 vote, with intention to keep the economy strong and help sustain an economic expansion. As it has now lowered it’s target interest rate twice since July, Chairman Jerome Powell has suggested that policy makers are not ready yet to cut rates a third time during the post-meeting press conference. Their stance on this may change however depending on the situation with the ongoing US-China trade war.
The Bank of England left policy unchanged, and held interest rates steady yesterday at 0.75% amidst continuing Brexit uncertainty. With less than 45 days until the UK is set to leave the European Union, Prime Minister Boris Johnson has promised to deliver Brexit by October 31 “come what may” even if it means leaving on a ‘no-deal’ Brexit.
The EUR is expected to see major movement on Monday as a sleuth of manufacturing data is scheduled to be released in the afternoon. Showing the diffusion index based on surveyed managers in the manufacturing industry, it is a leading indicator of economic health as businesses react quickly to market conditions.
Expected Ranges
AUD/CAD: 0.8950 - 0.9040 ▼
AUD/EUR: 0.6090 - 0.6185 ▼
GBP/AUD: 1.8250 - 1.8560 ▲
AUD/NZD: 1.0740 - 1.0855 ▲
AUD/USD: 0.6730 - 0.6825 ▼
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