This morning, the Australian jobs report joined the ranks of countries that have recently reported surprisingly strong numbers, notes Michael Pfister, FX analyst at Commerzbank.
AUD may remain well supported for now
“At 64.1k, job creation was slightly stronger than August’s strong figure (and driven primarily by full-time positions), while the unemployment rate was revised slightly lower. At 4.1%, “The unemployment rate remains near record lows and well below the average of the last decade. As a result, the Australian dollar has strengthened considerably this morning.”
“Of course, the Reserve Bank of Australia’s future actions will also depend on the third quarter inflation figures, which will be released in two weeks. However, with the labor market looking much stronger again and the trend having strengthened over several months, there may be little reason to initiate a change in interest rates in early November.”
“Such figures also suggest that the RBA will take its time until early next year. Therefore, the Aussie should remain well supported for the time being, although Chinese figures will also likely be the key factor in Australia. If they are weaker, “The Australian dollar is also likely to struggle.”
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
