AUD/USD Climbs as Unemployment Falls to 5.2%
The Australian dollar rallied against most of its counterparts after a drop in Chinese consumer inflation left room for further policy easing, while Australia’s labor market improved. The report released by the Australian Bureau of Statistics showed that the number of people employed rose by 14.000 last month. The number of full-time jobs advanced by 9.200 and part-time employment rose 4.800, today’s report showed.
Senior economist at Commonwealth Bank of Australia, Savanth Sebastian said “The labor market is healthy without shooting the lights out. The jobs data will provide another degree of comfort for the Reserve Bank. An array of indicators has suggested that activity levels have bottomed out and showing modest signs of improving”. Earlier today another report showed that the unemployment rate in New Zealand unexpectedly rose to 6.8% in the Q2 from 6.7%
Meanwhile, data out of China, the largest buyer of Australia’s exports, boosted the sentiment. the National Bureau of Statistics said China’s annual consumer inflation fell to a 30-month low of 1.8% and the producer price index dropped 2.9% in July from a year earlier. Since growth is the priority of Chinese policy makers, low inflation will open room for more expansionary policies.
The Asian stock markets turned bullish today. NIKKEI started the day at 8,870.81, previous close was 8,881.16. HANG SENG opened at 20,149.20, previous close was 20,065.50.
EUR/USD is trading at 1.2376 by the time of typing and for today resistances are located at 1.2440 and 1.2470. Support levels are 1.2340 and 1.2000.
GBP/USD is at 1.5672. Resistance levels are located at 1.5720 and 1.5775. Supports are located at 1.5620 and 1.5580.
USD/CHF is trading at 0.9703 by the time of typing and for today resistances are located at 0.9732 and 0.9775. Support levels are 0.9663 and 0.9630.
AUD/USD is trading at 1.0585. Resistances are located at 1.0600 and 1.0650. Support levels are 1.0545 and 1.0487.
The economic calendar is pretty heavy today. Chinese Industrial Production data will be released at 06:30 GMT. Italian Trade Balance data will be released at 09:00 GMT. UK Trade Balance numbers will be released at 09:30 GMT. Canada Mortgage and Housing Corporation will release Housing Starts data at 13:15 GMT. Statistics Canada will release Trade Balance report at 13:30 GMT. US Unemployment Claims figures will be released at 13:30 GMT.