forex trading outlook today - Australian dollar Up Late On Bullish Jobs Numbers october 13 2011 : The Australian dollar climbed to its highest levels in three weeks Thursday on news of strong employment growth in September which dashed talk of a cut in interest rates in November.
The economy churned out 20,400 more jobs in September, more than twice that expected by economists, with the unemployment rate falling to 5.2% from 5.3% in August, according to data from the Australian Bureau of Statistics.
At 0617 GMT, the Australian dollar was at US$1.0198 up from US$0.9935 late Wednesday after briefly touching a day's high of US$1.0230. Against the Japanese yen, the currency changed hands at Y78.626, up from Y76.20.
"It should be supported round the US$1.0180 level though US$1.0235 marks the halfway point of the late July high of US$1.1081 to the early October low of US$0.9388," said Westpac strategists.
Economists said the bounce back in employment showed there is more resilience in the economy than some had thought, giving the Reserve Bank of Australia more time to consider whether to cut rates.
"This latest economic news, coupled with improving sentiment around the European debt issues and a willingness by authorities there to stabilize the situation, should see the Australian dollar supported on any dips," said Paul Kammel, head of client management at Travelex.
But longer-term trends in employment remain flat. In the 9-months to January, the economy added just 41,000 jobs, a stark contrast to the massive 283,000 jobs added over the same period in 2010.
A sharp fall in the front-end bond futures contract after the jobs numbers looked like an overreaction and the 3-years remain a buy on dips, said Sally Auld, interest rate strategist at JPMorgan.
Trade numbers from the U.K., U.S. and Canada along with U.S. jobless claims are the main focus for offshore, said Sue Trinh, senior strategist at RBC Capital Markets.
The economy churned out 20,400 more jobs in September, more than twice that expected by economists, with the unemployment rate falling to 5.2% from 5.3% in August, according to data from the Australian Bureau of Statistics.
At 0617 GMT, the Australian dollar was at US$1.0198 up from US$0.9935 late Wednesday after briefly touching a day's high of US$1.0230. Against the Japanese yen, the currency changed hands at Y78.626, up from Y76.20.
"It should be supported round the US$1.0180 level though US$1.0235 marks the halfway point of the late July high of US$1.1081 to the early October low of US$0.9388," said Westpac strategists.
Economists said the bounce back in employment showed there is more resilience in the economy than some had thought, giving the Reserve Bank of Australia more time to consider whether to cut rates.
"This latest economic news, coupled with improving sentiment around the European debt issues and a willingness by authorities there to stabilize the situation, should see the Australian dollar supported on any dips," said Paul Kammel, head of client management at Travelex.
But longer-term trends in employment remain flat. In the 9-months to January, the economy added just 41,000 jobs, a stark contrast to the massive 283,000 jobs added over the same period in 2010.
A sharp fall in the front-end bond futures contract after the jobs numbers looked like an overreaction and the 3-years remain a buy on dips, said Sally Auld, interest rate strategist at JPMorgan.
Trade numbers from the U.K., U.S. and Canada along with U.S. jobless claims are the main focus for offshore, said Sue Trinh, senior strategist at RBC Capital Markets.
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