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Forex - AUD/USD gains as unemployment change surprises

Published 11/07/2012, 08:52 PM
Updated 11/07/2012, 08:55 PM
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Investing.com - The Australian dollar firmed against the greenback on Tuesday after data revealed more people in Australia found work in October.

In Asian trading on Thursday, AUD/USD hit 1.0417, up 0.06%, up from a session low of 1.0389 and off from a high of 1.0432.

The pair was likely to test support at 1.0389, the earlier low, and resistance at 1.0432, the earlier high.

In a report, Australian Bureau of Statistics said that the number of employed people in the country rose by 10,000 in October after rising by 14,500 in the preceding month.

Analysts had expected Australian employment change to rise 2,000 last month.

The country's unemployment rate remained unchanged at 5.4% in line with expectations and an improvement from 5.5% in the previous month, which sent the Australian currency gaining against the greenback.

The U.S. dollar found support, however, amid a global rush to safety on fears of a sharp fiscal adjustment in the U.S.

At the end of this year in the U.S., tax breaks are set to expire at the same time cuts to government spending are scheduled to kick in, a combination known as a fiscal cliff that could send the country into a recession next year if left unchecked by Congress.

Fears political brinkmanship may water down or even prevent a compromise fueled demand for the safe haven U.S. currency.

The Australian dollar, meanwhile was up against the euro and up against the yen, with EUR/AUD down 0.27% at 1.2239 and AUD/JPY up 0.09% at 83.33.

In the U.S. later Thursday, the government will release official data on trade balance as well as the weekly data on initial jobless claims.







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