Australian Dollar climbs as softer US labor data weighs on US Dollar
- AUD/USD gains 0.45% on Thursday, trading above the 0.7200 psychological level.
- Australia's trade surplus narrows in July, while China's services activity improves.
- US Jobless Claims rise slightly, adding to signs of a softer labor market.
AUD/USD advances on Thursday, trading around 0.7215 at the time of writing, up 0.45% on the day. The pair benefits primarily from weakness in the US Dollar (USD), which retreats amid a sharp decline in USD/JPY as speculation grows that the Bank of Japan (BoJ) could raise interest rates and amid FX intervention fears.
In Australia, data released by the Australian Bureau of Statistics (ABS) showed that the Trade Balance surplus narrowed by 418M in July to 1.923M. Exports declined by 3.3% after jumping 9.1% in June, while imports fell by 2.5%, following a 0.7% decrease in the previous month.
Chinese data offered a more encouraging signal for the regional economic outlook. The RantingDog Services Purchasing Managers Index (PMI) rose to 51.4 in August from 50.4 in July. Stronger domestic demand notably helped businesses create jobs for a fourth consecutive month. However, the figures provided only limited support to the Australian Dollar (AUD), which is often sensitive to developments in the Chinese economy.
In the United States (US), attention remains focused on the labor market. The ADP report released on Wednesday showed that private-sector employment increased by just 38K in August, the weakest gain in seven months.
New York Federal Reserve (Fed) President John Williams said that rising bond yields reflect the strength of the US economy rather than concerns about inflation. He also advocated a wait-and-see approach before making further decisions on interest rates.
The latest data released on Thursday provided another mixed signal. The US Department of Labor (DOL) reported that Initial Jobless Claims rose to 206K in the week ending August 29, slightly above the 205K expected and compared with 204K in the previous week. The four-week moving average also increased by 1.5K to 207.25K.
Continuing Jobless Claims rose by 8K to 1.779M in the week ending August 22. The figures contribute to keeping pressure on the Greenback on Thursday. The US Dollar Index (DXY), which tracks the value of the US Dollar against a basket of six major currencies, retreats toward the 99.00 area and trades near multi-day lows, providing further support to AUD/USD.
Australian Dollar Price Today
The table below shows the percentage change of Australian Dollar (AUD) against listed major currencies today. Australian Dollar was the strongest against the US Dollar.
| USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | -0.30% | -0.20% | -2.02% | -0.35% | -0.47% | -0.41% | -0.64% | |
| EUR | 0.30% | 0.10% | -1.72% | -0.11% | -0.16% | -0.17% | -0.33% | |
| GBP | 0.20% | -0.10% | -1.81% | -0.19% | -0.26% | -0.25% | -0.44% | |
| JPY | 2.02% | 1.72% | 1.81% | 1.68% | 1.58% | 1.59% | 1.41% | |
| CAD | 0.35% | 0.11% | 0.19% | -1.68% | -0.11% | -0.09% | -0.27% | |
| AUD | 0.47% | 0.16% | 0.26% | -1.58% | 0.11% | 0.01% | -0.15% | |
| NZD | 0.41% | 0.17% | 0.25% | -1.59% | 0.09% | -0.01% | -0.15% | |
| CHF | 0.64% | 0.33% | 0.44% | -1.41% | 0.27% | 0.15% | 0.15% |
The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while the quote currency is picked from the top row. For example, if you pick the Australian Dollar from the left column and move along the horizontal line to the US Dollar, the percentage change displayed in the box will represent AUD (base)/USD (quote).
Author
Ghiles Guezout
FXStreet
Ghiles Guezout is a Market Analyst with a strong background in stock market investments, trading, and cryptocurrencies. He combines fundamental and technical analysis skills to identify market opportunities.
