The Australian dollar racked up it’s best weekly gains in over 4 years this week hitting an 8 month high as data out of America failed to impress the market.
At close of trade on Friday the Aussie dollar finished at US74.34c up from US73.51c the previous day.
The latest Non-Farm Payrolls figure from the US hit the market at 242,000 against analysts’ expectations for a number of 190,000, while the unemployment rate remained unchanged at 4.9 percent.
The hourly earnings figure was the one that disappointed investors coming in at -0.1 percent against expectations for a number of 0.2 percent while the yearly number showed a reading of 2.2 percent, well down from the previous figure of 2.5 percent.
The wage numbers were seen as important as they are closely connected with inflation, and this is something that the US Federal Reserve is watching very closely in their quest to lift interest rates again.
The News caused a sell off across the board for the US dollar with the Australian dollar being one of the biggest beneficiaries.
Now many are predicting the Fed will hold off raising interest rates until they see further confirmation that inflation is moving towards their target level
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