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Forex - AUD/USD surges following jobs data

Published 03/13/2013, 09:58 PM
Updated 03/13/2013, 09:59 PM
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Investing.com - The Australian dollar soared against its U.S. rival during Thursday’s Asian session following some encouraging employment data from down under.

In Asian trading Thursday, AUD/USD surged 0.69% to 1.0371. The pair was likely to find support at 1.0268, Tuesday's low and has cracked resistance at 1.0368.

The Aussie moved higher after after the Australian Bureau of Statistics said that Australian unemployment rate remained unchanged at a seasonally adjusted 5.4%. Analysts expected a February reading of 5.5%.

In another report, the Australian Bureau of Statistics said that Australian employment change rose to a seasonally adjusted 71,500 in February from 13,000 in January. The January reading was revised higher from 10,400. Analysts expected a February increase of just 9,000 new jobs.

Australia’s cheery employment data comes a day after a report showed that home loans in Australia fell unexpectedly in January, sliding 1.5% after a 2.1% decline the previous month. Analysts had expected home loans to tise 0.6% in January.

Also on Wednesday, the Westpac Banking Corporation said consumer sentiment rose 2% in March, after a 7.7% increase the previous month.

Australia’s solid jobs outlook could further reduce the chances the Reserve Bank of Australia lowers interest rates at its next meeting in early April. RBA opted to leave rates unchanged at 3% following the conclusion of its most recent meeting.

Some traders are anticipating there is enough strength in today’s rally in the Aussie that there could be a carry-over effect into the European and U.S. sessions with some talk of AUD/USD hitting 104 for the first time since early February.

Elsewhere, AUD/JPY continues to trade around multi-year highs up 0.40% at 99.41. GBP/AUD is lower by 0.51% at 1.4416 as the Aussie also continues to trade at multi-year highs against sterling. AUD/NZD is up 0.64% at 1.2668.


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