AUD/USD: Muted reaction to bigger-than-expected drop in Aussie Unemployment Rate


  • AUD/USD steady near 0.7755 following the Aussie jobs report. 
  • Australia's jobless rate drops more than expected but fails to propel AUD higher. 
  • Full-time jobs growth slows, possibly capping the upside in the AUD.

Australia's upbeat jobs report released at 00:30 GMT fails to impress the AUD bulls, leaving AUD/USD largely unaffected near 0.7755. 

Australia's jobless rate ticked lower to 6.6% in December to hit the lowest level since April versus expectations for a decline to 6.7% from November's 6.8%. The economy added 50K jobs as expected following a solid job gain of 90K in November. The Participation ticked higher to 66.2% as expected. Full-time jobs grew by 35.7K following December's 84.2K. 

The decline in the Unemployment Rate is a bullish development for the Aussie dollar. However, so far, the buyers have remained on the sidelines, possibly due to the slowdown in Full-time Employment. 

Also, the data is not strong enough to force the Reserve Bank of Australia (RBA) to ditch its dovish bias. The central bank kept its cash rate unchanged at a record low of 0.1% in December repeated its promise to do more easing if needed. Further, it reiterated that there are no expectations for rate hikes for the next three years and won't raise borrowing costs until the inflation is within the to 3% target band. 

The pair's failure to cheer the decline in the jobless rate makes it vulnerable to pullbacks. The US dollar will likely draw bids if the Treasury yields track the US inflation expectations higher. The US 10-year yield is currently flat near 1.08%, having risen from 0.90% to 1.18% earlier this month.

A potential drop in the S&P 500 futures may draw offers for the AUD and other risk currencies. The futures are currently trading flat to negative. 

Technical levels

AUD/USD

Overview
Today last price 0.7756
Today Daily Change 0.0008
Today Daily Change % 0.10
Today daily open 0.7748
 
Trends
Daily SMA20 0.7703
Daily SMA50 0.7535
Daily SMA100 0.7355
Daily SMA200 0.7112
 
Levels
Previous Daily High 0.7762
Previous Daily Low 0.7691
Previous Weekly High 0.7806
Previous Weekly Low 0.7665
Previous Monthly High 0.7743
Previous Monthly Low 0.7338
Daily Fibonacci 38.2% 0.7735
Daily Fibonacci 61.8% 0.7718
Daily Pivot Point S1 0.7705
Daily Pivot Point S2 0.7663
Daily Pivot Point S3 0.7634
Daily Pivot Point R1 0.7776
Daily Pivot Point R2 0.7805
Daily Pivot Point R3 0.7847

 

 

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