Australia: Strong employment numbers - BBH

Sandeep Kanihama FXStreet Contributor

Australia reported strong employment data and as a result after making new highs near $0.8000, AUD has reversed to toy with yesterday's low.

Key Quotes

“A convincing break of that area (~$0.7910), especially on a closing basis, could be the kind of technical reversal that momentum traders take note.”

“Australia created 62k new full-time positions while losing 48k part-time positions. It is the fourth strong full-time job creation over the last five months. Consider that in H1, Australia created on average nearly 28k full-time jobs a month. Last year, the monthly average was a loss of nearly 2k full-time jobs. Hours worked rose 4.6% at an annualized rate in Q2.”

“The employment data bodes well for consumption, production, and exports. The central bank is likely to recognize the diminished downside risks while the substantial slack discourages a rate hike. Wage pressures are modest and next week's Q2 CPI is expected to show steady or slower inflation.”

Author

Sandeep Kanihama

FXStreet Contributor

Sandeep Kanihama is an FX Editor and Analyst with FXstreet having principally focus area on Asia and European markets with commodity, currency and equities coverage. He is stationed in the Indian capital city of Delhi.

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