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Forex - AUD up on solid jobs data, China trade data

Published 05/07/2014, 10:57 PM
Updated 05/07/2014, 10:59 PM
AUD up on jobs, China trade data
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Investing.com - The Australian dollar jumped after better than expected labor force data and China trade numbers on Thursday.

AUD/USD traded at 0.9365, up 0.40%, after the data, while USD/JPY held at 101.87, down 0.04%.

Australia's April labor force survey showed a gain of 14,200 jobs, compared to an increase of 6,800 jobs expected and an unemployment rate at 5.8% from 5.9% expected, while the participation rate stayed steady at 64.7% as expected.

China's April trade data for April showed a is 0.9% gain exports, year-on-year, compared to a drop of 1.7% expected and imports up 0.8%, compared to a 2.3% drop expected. The trade surplus was $18.45 billion, compared to $13.90 billion expected.

Overnight, the dollar edged higher against most major currencies after Russian President Vladimir Putin said he'd do everythign possible to diffuse the crisis in Ukraine.

Concerns that Ukraine will descend into civil war eased after President Putin called on separatists in the eastern reaches of the country to postpone their referendum on independence, and added that Russia had withdrawn its forces from the border.

Putin stressed that Russia will do "all it can" to resolve the crisis and will take a "most positive" approach to international peace efforts.

The crisis has taken its toll on the dollar by stoking fears the U.S. will become more involved, which could hamper recovery, though Putin's words supported the greenback.

The dollar did, however, see headwinds back home.

Federal Reserve Chair Janet Yellen said earlier that a high degree of monetary accommodation remains warranted given the slack still persistent in the economy, and added that while conditions in the U.S. labor market have improved, they remain far from satisfactory.

Yellen added that monetary authorities expect economic growth to accelerate this year despite the slowdown in the first quarter but warned that the recent housing market slowdown "could prove more protracted than currently expected."

Still, losses were limited, as expectations for interest rates to remain low even after the Fed wraps up its bond-buying stimulus program have been priced into trading.

The US Dollar Index, which tracks the performance of the greenback versus a basket of six other major currencies, fell 0.01% at 79.26.

On Thursday, the U.S., is to publish the weekly report on initial jobless claims.

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