Australian dollar boosted by jobs figures

Andrew Masters FIBO Group

The Australian dollar is making another run for the US80c mark in today’s trading session after another stellar jobs report which shows the local economy is in great shape.

Data released earlier today from Australia showed there were 34,000 which smashed expectations for a figure of 9,000 and marks the best yearly run for jobs growth since 2015

The unemployment rate rose from 5.4 to 5.5 percent but that was attributed to the number of people looking for work which also rose to a figure of 65.7 percent.

“The rise in the unemployment rate is actually a positive sign for the Australian labor market,” said Marshall Gittler, chief strategist at ACLS Global.

“That’s because it’s due to a rise in the participation rate. It means people are getting more confident about the labor market and so some people who were previously on the sidelines have decided to look for work. That’s good for the economy.” He added.

Wage growth in Australia is still a little slack but some predict this will soon will soon follow the rise in job figures which in turn will boost inflation which currently sits below the RBA’s target rate.

This will allow the Reserve Bank of Australia to begin lifting interest rates as the year unfolds.

“It’s An Encouraging Report For The Economy, Government And RBA. We’ll Need to See Some Further Declines In Unemployment And Underemployment, But If They Are Forthcoming, Wages Growth Should Begin To Lift And The RBA Will Likely Be Able To Remove Some Monetary Accommodation During 2018” Noted Ivan Colhoun, National Australia Bank

Author

Andrew Masters

FIBO Group

EUR/USD holds firm near 1.1850 amid USD weakness

EUR/USD remains strongly bid around 1.1850 in European trading on Monday. The USD/JPY slide-led broad US Dollar weakness helps the pair build on Friday's recovery ahead of the Eurozone Sentix Investor Confidence data for February.

GBP/USD hovers near 1.3600 as UK government crisis weighs on Pound Sterling

GBP/USD moves sideways after registering modest gains in the previous session, trading around 1.3610 during the European hours on Monday. The pair could come under pressure as the Pound Sterling may weaken amid a fresh government crisis in the United Kingdom.

Gold remains supported by China's buying and USD weakness as traders eye US data

Gold struggles to capitalize on its intraday move up and remains below the $5,100 mark heading into the European session amid mixed cues. Data released over the weekend showed that the People's Bank of China extended its buying spree for a 15th month in January. Moreover, dovish US Fed expectations and concerns about the central bank's independence drag the US Dollar lower for the second straight day, providing an additional boost to the non-yielding yellow metal.

Cardano steadies as whale selling caps recovery

Cardano (ADA) steadies at $0.27 at the time of writing on Monday after slipping more than 5% in the previous week. On-chain data indicate a bearish trend, with certain whales offloading ADA. However, the technical outlook suggests bearish momentum is weakening, raising the possibility of a short-term relief rebound if buying interest picks up.

Japanese PM Takaichi nabs unprecedented victory – US data eyed this week

I do not think I would be exaggerating to say that Japanese Prime Minister Sanae Takaichi’s snap general election gamble paid off over the weekend – and then some. This secured the Liberal Democratic Party (LDP) an unprecedented mandate just three months into her tenure.

Bitcoin, Ethereum and Ripple consolidate after massive sell-off

Bitcoin, Ethereum, and Ripple prices consolidated on Monday after correcting by nearly 9%, 8%, and 10% in the previous week, respectively. BTC is hovering around $70,000, while ETH and XRP are facing rejection at key levels. Traders should be cautious: despite recent stabilization, upside recovery for these top three cryptocurrencies is capped as the broader trend remains bearish.