AUD/USD Falls After Australia’s July Job Reports Upsets Predictions

AUD/USD

The Australian Dollar fell against the USD following the pessimistic jobs report, showing that 40.9 thousand jobs were lost in July. The unemployment rate fell to 3.4% from June’s 3.5%. Although the decline in the unemployment rate might be a result of the decrease in the participation rate, which declined from 66.8% to 66.4% in June. 

AUD/USD reaction remains low-spirited, despite taking a hit on the jobs data as prices are holding at nearly 1% above the August low.

The Reserve Bank of Australia (RBA) is also lagging behind its counterparts in tightening policy, and rate hike expectations were lower ahead of the jobs report. Also, the market’s rate expectation ahead of September is modest. Also, consumer inflation expectations have reduced along with consumer confidence.

The somber view on future rate hikes and the recent fall in the AUD explains the modest reaction to the jobs report. However, that leaves an upside price risk should the RBA deliver another 50-bps hike.

The failing Chinese economy has also weighed on the Australian Dollar lately as China is Australia’s major trade partner. China’s central bank cut its medium-term lending facility rate earlier this week, failing to assuage wary investors.

The PBOC is also cutting its 1- and 5-year loan prime rates next week, which might incite positive economic sentiment across the Asia-Pacific region.

This Post Has 2 Comments

  1. El software de monitoreo de teléfonos móviles CellSpy es una herramienta muy segura y completa, es la mejor opción para un monitoreo efectivo de teléfonos móviles. La aplicación puede monitorear varios tipos de mensajes, como SMS, correo electrónico y aplicaciones de chat de mensajería instantánea como Snapchat, Facebook, Viber y Skype. Puede ver todo el contenido del dispositivo de destino: ubicación GPS, fotos, videos e historial de navegación, entrada de teclado, etc.

  2. Siempre que haya una red, puede grabar en tiempo real de forma remota, sin instalación de hardware especial.

Leave a Reply

Important Link

Fund Your Deriv Account
Withdraw Funds to Your Local Currency
VIP Trading Signals
Learn To Trade

Contact Us

Follow Us

Disclaimer

Forex, Crypto, Options, and Binary Options have both large potential rewards and large potential risks. Therefore, before investing or trading any of the assets, ensure you are aware of and willing to accept the accompanying risks. Do not trade money you cannot afford to lose.

All Rights Reserved. None of the content of this website can be published elsewhere by any means without the prior consent of the owner(s). Please, check our terms & conditions and privacy policy before continuing to use this website.

This website and its owner(s) are not in any way liable for any incurred loss, whether caused by the information provided on this website or otherwise. The use of this website, including the content and information provided, is the user’s sole liability.