AUD/USD markedly higher on another strong Aussie jobs data
|- AUD/USD rallied hard on the back of another impressive jobs report as traders figure the RBA needs to start upping their rhetoric.
- AUD/USD rallied from 0.7234 to a high of 0.7274 on a stellar report.
The main numbers were a much stronger than expected outcome as follows:
The employment headline was +32.8K vs the expected +20K and the prior +5.6K. The unemployment rate: 5% vs the expected 5.1% and matched the prior 5.0% the full-time employment change at +42.3K was very impressive vs the prior +20.3K although the part-time employment change came in at -9.5K vs the prior of -14.7K. The participation rate was slightly higher at 65.6% vs the expected 65.5% and prior 65.4%, (offsetting the parttime increase disappointment).
AUD/USD has already been looking strong into the data following an impressive day in New York despite the number of headwinds surround the commodity complex. AUD/USD moved up from London's Breit woe associated lows down at 0.7170 through the 0.72 handle into the 0.7220s into the North American close; That was despite the accumulated 25% drop in WTI and US benchmarks markedly lower again for a fourth session with the VIX spiking to 23.
RBA outlook
With respect to the RBA, wages are starting to drift higher, the 2.3%yr pace is the fastest in three years - But, is that good enough? Meanwhile, Economists at National Australia Bank Limited argued, however, that while growth has been strong and progress has been made on reducing the unemployment rate, the RBA will likely want to see further evidence of a pickup in wages growth and inflation:
"There has been some progress on this front but the process has been gradual and is likely to remain so, with still some spare capacity in the labour market and the economy more broadly."
AUD/USD levels
Analysts at Commerzbank explained that the September and current November highs at 0.7302/14 are expected to be revisited. "If this resistance zone were to be bettered, the 200 day moving average at 0.7456 and the July 9 high at 0.7484 would be in focus."
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