The Australian dollar is trading lower against its U.S. rival in
Thursday’s Asian session following news of a surprisingly weak Aussie
jobs number.
In Asian trading Thursday, AUD/USD is lower by 0.20% at 1.0524. The pair was likely to find support at 1.0448, the low of March 26 and resistance at 1.0549, the high of January 24.
Official data showed Australia’s unemployment rate rose to 5.6% last month from 5.4%. Analysts expected the number to hold steady at 5.4%. The number of employed Australians fell by 36,100 following a gain of 74,000 in February.
Australia’s unemployment rate for March is a three-year and could be a sign that businesses in the world’s 12th-largest economy are being crimped by the strong Australian dollar. The jobs number comes just a day after the Reserve Bank of Australia indicated it believes the economy can deal with the strong Aussie.
In a media interview, RBA board member John Edwards said he would prefer a lower Aussie, but added that the strong dollar is currently not causing problems that should force the central bank to respond in the near-term.
RBA next meets on May 7, but has left rates unchanged at 3% following its most recent meetings. Even RBA has acknowledged other sectors of the Australian economy need to pick up the slack as mining investment declines. It is widely believed Australia’s mining boom will peak this year.
The jobs report comes a day after the Westpac Banking Corporation said consumer sentiment in Australia fell 5.1% in April after a 2% increase the previous month.
Elsewhere, AUD/JPY fell 0.44% to 104.80 while EUR/AUD gained 0.09% to 1.2409. AUD/NZD slipped 0.30% to 1.2256
In Asian trading Thursday, AUD/USD is lower by 0.20% at 1.0524. The pair was likely to find support at 1.0448, the low of March 26 and resistance at 1.0549, the high of January 24.
Official data showed Australia’s unemployment rate rose to 5.6% last month from 5.4%. Analysts expected the number to hold steady at 5.4%. The number of employed Australians fell by 36,100 following a gain of 74,000 in February.
Australia’s unemployment rate for March is a three-year and could be a sign that businesses in the world’s 12th-largest economy are being crimped by the strong Australian dollar. The jobs number comes just a day after the Reserve Bank of Australia indicated it believes the economy can deal with the strong Aussie.
In a media interview, RBA board member John Edwards said he would prefer a lower Aussie, but added that the strong dollar is currently not causing problems that should force the central bank to respond in the near-term.
RBA next meets on May 7, but has left rates unchanged at 3% following its most recent meetings. Even RBA has acknowledged other sectors of the Australian economy need to pick up the slack as mining investment declines. It is widely believed Australia’s mining boom will peak this year.
The jobs report comes a day after the Westpac Banking Corporation said consumer sentiment in Australia fell 5.1% in April after a 2% increase the previous month.
Elsewhere, AUD/JPY fell 0.44% to 104.80 while EUR/AUD gained 0.09% to 1.2409. AUD/NZD slipped 0.30% to 1.2256
