Fall In Jobless Rate, Fiscal Stimulus Hopes Lift Australian Dollar
21 January 2021 - 11:06AM
RTTF2
The Australian dollar firmed against its major counterparts in
the Asian session on Thursday, as the nation's unemployment rate
fell in December and on hopes of fiscal support from the Biden
administration to boost the economy.
Data from the Australian Bureau of Statistics showed that
Australia's jobless rate dropped a seasonally adjusted 6.6 percent
in December.
That was below expectations for 6.7 percent and down from 6.8
percent in November.
The Australian economy added 50,000 jobs last month, in line
with expectations following the addition of 90,000 jobs in the
previous month.
Asian stock markets are mostly higher following the record
closing highs overnight on Wall Street amid hopes that the Biden
administration's economic stimulus will revive growth in the
world's largest economy.
The aussie climbed to 6-day highs of 0.7777 against the
greenback and 80.52 against the yen, off its early lows of 0.7743
and 80.13, respectively. The aussie is likely to challenge
resistance around 0.80 against the greenback and 82.00 against the
yen.
After falling to 1.5632 at 6:00 pm ET, the aussie jumped to a
1-week high of 1.5597 against the euro. On the upside, 1.00 is
likely seen as its next resistance level.
The aussie edged up to 0.9810 against the loonie and 1.0805
against the kiwi, reversing from its early low of 0.9777 and a
2-day low of 1.0782, respectively. If the aussie rises further, it
may find resistance around 1.00 against the loonie and 1.09 against
the kiwi.
Looking ahead, the European Central Bank will announce interest
rate decision at 7:45 am ET. The ECB is expected to hold its main
refi rate at a record low zero percent and the deposit rate at
-0.50 percent.
Canada new housing price index for December, U.S. weekly jobless
claims for the week ended January 16 and housing starts and
building permits for December are due out in the New York
session.
Eurozone flash consumer sentiment index for January is set for
release at 10:00 am ET.
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