Falling Jobless Rate Buoys Australian Dollar
17 October 2019 - 1:59PM
RTTF2
The Australian dollar traded higher against its major
counterparts in the Asian session on Thursday, as a reduction in
the nation's unemployment rate in September dimmed hopes of another
rate cut from the Reserve Bank of Australia next month.
Data from the Australian Bureau of Statistics showed that
Australia's unemployment rate came in at a seasonally adjusted 5.2
percent in September.
That was shy of expectations for 5.3 percent, which would have
been unchanged from the August reading.
The Australian economy added 14,700 jobs last month, below
forecasts for 15,000 following the increase of 34,700 jobs in the
previous month.
Reserve Bank of Australia Deputy Governor Guy Debelle said the
construction activity is set to continue its downward trend and the
effect on the broader economy is somewhat more than expected.
Much of the downturn in construction activity is still ahead, he
said in a speech. "We are forecasting a further 7 per cent decline
in dwelling investment over the next year, and there is some risk
the decline could be even larger."
The aussie advanced to a 3-day high of 0.6791 against the
greenback, from Wednesday's closing value of 0.6758. On the upside,
0.71 is likely seen as the next resistance level for the
aussie.
The aussie spiked up to a 6-day high of 73.86 against the yen,
compared to 73.52 hit late New York Wednesday. The aussie is poised
to find resistance around the 75.00 region.
The Australian currency firmed to 2-day highs of 0.8966 against
the loonie and 1.6310 against the euro, up from yesterday's closing
quotes of 0.8921 and 1.6377, respectively. The aussie is seen
locating resistance around 0.92 against the loonie and 1.60 against
the euro.
The aussie strengthened to 1.0793 against the kiwi after the
data, its strongest since October 1, and held steady thereafter.
The next possible resistance for the aussie lies around the 1.10
mark.
Looking ahead, U.K. retail sales data for September and Eurozone
construction output for August are due in the European session.
U.S. weekly jobless claims for the week ended October 12,
building permits, housing starts and industrial production, all for
September, will be featured in the New York session.
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