The Australian dollar dropped today on the basis of the disappointing employment report. The currency bounced, though, trimming its losses with the help of crude oil rally and news from China.
The seasonally adjusted figure for Australian employment dropped by 7,900 in January. Forecasters were off the mark completely, promising ahead of the report a big gain of 12,900. The unemployment rate increased unexpectedly from 5.8% to 6.0%.
The Australian dollar dropped after the report but got support from the rise of crude oil prices. Additionally, China’s inflation accelerated, easing concerns about economic slowdown in the biggest trading partner of Australia.
AUD/USD was down from 0.7182 to 0.7133 intraday but bounced to 0.7169 as of 11:39 GMT today. AUD/JPY traded at 81.65 after falling from 81.93 to 81.06. EUR/AUD was at about 1.5499 following the rally from 1.5482 to 1.5612.
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