Breaking News
Get Actionable Insights with InvestingPro+: Start 7 Day FREE Trial Register here
Investing Pro 0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

Aussie Climbs As Jobs Data Beats Estimates

By MarketPulse (Andrew Robinson)ForexJan 24, 2019 01:05AM ET
www.investing.com/analysis/aussie-climbs-as-jobs-data-beats-estimates-200378676
Aussie Climbs As Jobs Data Beats Estimates
By MarketPulse (Andrew Robinson)   |  Jan 24, 2019 01:05AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 

Unemployment back at 7-year lows

AUD/USD rose as much as 0.33% to hit an intra-day high of 0.7168 after the economy added more jobs than expected in December. Australia added a net 21,600 jobs, more than the 16,500 economists had expected. A slight negative note was that 24,600 part-time jobs were added with a loss of 3,000 full-time ones, the second monthly decline in a row.

The unemployment rate dipped to 5.0% from 5.1%, equaling the seven-year lows of September and October, though this could be attributed partly to the slide in the participation rate to 65.6% from 65.7%.

In other Australia news, National Australia Bank (AX:NAB) announced that it was raising variable mortgage rates by 12-16 bps effective January 31. Recall last year in August, Westpac (NYSE:WBK) became the first bank to increase variable home loan rates. Commonwealth Bank (AX:CBA) followed suit in September but NAB kept rates unchanged. It is now catching up with the rest.

The Aussie dollar took this news badly, reversing gains and lurching into negative on the day. AUD/USD is now down 0.22% at 0.7128 and the pair remains below the 100- and 55-day moving averages at 0.7175 and 0.7191, respectively.

AUD/USD Hourly Chart

AUD/USD Hourly Chart
AUD/USD Hourly Chart

Source: OANDA fxTrade

What can the ECB say about the economy?

The ECB holds its first meeting since it stopped its bond-buying program at the end of last year, and is now focusing on what will be the next move in interest rates. Economic data from Europe has been uninspiring over the last few months, so it would be difficult to see how Mr Draghi could find anything positive to say. We will likely see a reference to heightened risks that the economy is facing.

EUR/USD is currently sitting on the 55-day moving average at 1.1383 having found support from the four-point rising trendline drawn from the December 11 low earlier in the week. Slow stochastics momentum appears to be turning bullish ahead of the oversold threshold.

EUR/USD Daily Chart

EUR/USD Daily Chart
EUR/USD Daily Chart

Source: OANDA fxTrade

Trump’s State of the Union address in jeopardy?

US House Speaker Pelosi has said she won’t let President Trump give his State of the Union address in her chamber unless government agencies reopen. She clarified that the invitation to speak on January 29 was in the belief that the US government would not still be shut down. Meantime, Trump needs to find a new venue, unless there is a dramatic development in the standoff. The address has been postponed before. The most recent case was in 1986 when Ronald Reagan’s address was postponed after the Challenger space shuttle exploded after takeoff on January 28. The address has never so far clashed with a US government shutdown.

Flash PMIs give a glimpse of the 2019 economy

The first PMI data for January from Markit are released today, with flash numbers from Germany, Europe and the US. Surveys for Germany and the US are anticipating softer numbers, while the forecast for the Euro-zone is for an unchanged reading.

Original post

Aussie Climbs As Jobs Data Beats Estimates
 

Related Articles

Aussie Climbs As Jobs Data Beats Estimates

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email