AUD/USD stays below 0.5800 despite surprise upbeat Aussie jobs report
- AUD/USD fails to cheer the positive Aussie data amid fears of the upcoming RBA.
- Aussie Unemployment rate slipped back to normal 5.1% while Employment Change crossed forecast and Prior.
- The risk-tone recovers off-late following the ECB’s package, eyes on the stimulus from the US and Japan.
- RBA will be the key, for now, coronavirus headlines remain as an important catalyst.
Despite witnessing better than forecast February month Australian jobs report, AUD/USD remains on the back foot near 0.5770 during Thursday’s Asian session. The reason could be traced from the comparative strength of the US dollar amid the rush to hoard the greenback during the times of major steps to combat the coronavirus (COVID-19).
Australia’s February month seasonally adjusted Employment Change rose beyond 10K forecast and 13.5K prior figures to 26.7K whereas Unemployment Rate also slipped below 5.3% expected and earlier to 5.1%.
Read: Breaking: Australia Feb Unemployment Rate +5.1 pct, s/adj (Reuters poll: +5.3)
Even so, the Aussie pair fails to cheer the data amid the broad US dollar strength backed by the global stimulus measures to ward off the negative impacts of the virus. The recent announcement came from the European Central Bank (ECB) while the heavy measures from the US and Japan are still in the pipeline.
The Pandemic has now infected more than 2,14,000 people across the globe while the latest report suggests a spike in cases from Italy and the UK.
However, the market’s risk-tone currently seems to praise the ECB’s efforts, as well as expectations of Japanese and the US Quantitative Easing (QE). While portraying the same, the US stock futures and Japan’s NIKKEI flash gains by the press time.
Having witnessed the initial market reaction to the Aussie data, traders will now focus on the upcoming RBA where most analysts predict a rate cut and/or Quantitative Easing (QE) to ward off the negative impact of the coronavirus.
Read: RBA and Australian Employment Preview: Useless rate cut to do no good to Aussie
It should, however, be noted that the markets now await US stimulus package, which is anticipated to the size of $1.3 trillion, for another push up o the US dollar. Also in the pipeline is the major combat measures from the Japanese side that the press expects somewhere near 30 trillion yen.
Technical Analysis
A daily closing beyond 0.6325, near the weekly top, only could help the pair to extend the recovery gains, else expectations of its further declines to the year 2003 low near 0.5670 can’t be ruled out.
Author
Anil Panchal
FXStreet
Anil Panchal has nearly 15 years of experience in tracking financial markets. With a keen interest in macroeconomics, Anil aptly tracks global news/updates and stays well-informed about the global financial moves and their implications.
