+357 25 105 641
  • Facebook
  • YouTube
Australian dollar jumps after yesterdays slump
Published on 18.08.2016 08:09

The Australian dollar is back above US77c today after better than expected job figures indicated the economy may be back on track.

At 1.59pm (AEDT) the Aussie dollar was trading at US77.04c up from Us76.53c in yesterday’s trading.

Data our earlier today from the Australian Bureau of Statistics showed the jobless rate rate fell to 5.7 percent in July, down from 5.8 per cent in June, while the total number of new jobs created jumped 26,200, well above expectations for a figure of 11,000.

The only downside was that the gains were made in the part time job sector with an increase of 71,600 while the full time sector fell by 45,400.

“July’s labour market figures were much better than expected and forward looking indicators suggest the labour market should continue to remain healthy,” noted Capital Economics assistant economist Kate Hickie.

“However, given that part-time positions accounted for all of the new jobs created in July there is probably still a decent amount of spare capacity in the labour market, which means that wage growth is likely to remain subdued.” she added.

The news gave the Australian dollar a much needed boost after yesterday’s minutes meeting from the US Federal Reserve which showed that there is still a real possibility that there will be a rate rise in the US next month.

The release saw the Aussie dollar plummet and threatening to break down through the US76c mark.

With the employment market looking healthy there may be further gains ahead for the Australian dollar which may force the Reserve Bank of Australia to consider an interest rate cut at next month’s board meeting

The material published in on this page is produced by the FIBO group companies, and should not be considered as the provision of investment advice for the purposes of Directive 2004/39/EC; furthermore it has not been prepared in accordance with legal requirements designed to promote the independence of investment research and is not subject to any prohibition on dealing ahead of the dissemination of investment research.

Andrew Masters

Analyst

The power of leverage is the power of Forex.
×

Risk warning: Trading foreign exchange on margin carries a high level of risk and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to trade foreign exchange you should carefully consider your investment objectives, your level of experience and preparation of taking risk. The possibility exists that you could sustain a loss of some or of all of your initial investments and therefore you should not risk more than you are prepared to lose. Please seek independent financial advice if necessary.

Important notice
By clicking "Continue" you will be redirected to the website operated by FIBO Group, LTD company registered in BVI and regulated by FSC. Click "Cancel" to remain on this page.