Australian Dollar Drops On Disappointing Jobs Data, Fed Tightening Concerns
11 November 2021 - 11:35AM
RTTF2
The Australian dollar fell against its major counterparts in the
Asian session on Thursday, as downbeat Australia jobs data for
October and concerns over a faster monetary policy tightening by
the U.S. Federal Reserve weighed on the currency.
Data from the Australian Bureau of Statistics showed that the
Australian economy lost 46,300 jobs last month, missing forecasts
for an increase of50,000 following the loss of 138,000 jobs in the
previous month.
The unemployment rate in Australia increased to a seasonally
adjusted 5.2 percent in October, well above expectations for 4.8
percent and up from 4.6 percent in September.
Overnight data showed that U.S. consumer prices jumped at the
fastest pace since 1990 in October, fueling concerns that the Fed
is likely to raise rates after it ends the tapering of bond
purchases by the middle of next year.
U.S. treasury yields surged and money markets are pricing in a
first Fed rate hike by July.
The aussie slipped to more than 4-week lows of 0.7295 against
the greenback and 0.9126 against the loonie, following its prior
highs of 0.7341 and 0.9164, respectively. The aussie is seen
locating support around 0.70 against the greenback and 0.90 against
the loonie.
The aussie pulled back from its previous highs of 1.5648 against
the euro and 83.66 against the yen, dropping to 1.5721 and 83.16,
respectively. The aussie may face support around 1.62 against the
euro and 80.00 against the yen.
The Australian currency slipped to 1.0357 against the kiwi soon
after the data and held steady thereafter. The pair had ended
Wednesday's deals at 1.0369.
Looking ahead, at 2.00 am ET, the Office for National Statistics
will release UK GDP, industrial and construction output and foreign
trade figures for September.
The European Central Bank's economic bulletin and the European
Commission economic forecasts will be out in the European
session.
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