The Australian dollar was under pressure for long days and eventually slipped under the 0.75 level. But now, it certainly has reasons to rise.
Australia reported a gain of no less than 60.9K jobs in the month of March. The outcome handily beats 20K that was expected. 74.5K full-time jobs were gained while 13.5K were lost. So, also the details are favorable.
Australia’s unemployment rate remains at 5.9%, but the participation rate is up from 64.6% to 64.8%, so it’s good news all in all. Hours worked increased by 3.2 million.
The employment report is undoubtedly positive and the only caveat is that this print could be a one-off. Labor reports can be volatile and undergo revisions, even if the recent ones showed a changed in the single thousands or in the teens. And, the numbers are seasonally adjusted.
Two other AUD/USD boosters
In addition to the good news from Australia, the nation’s biggest trading partner, China, reported its trade numbers. Imports, many of them from Australia, are up 26.3% year over year, surpassing expectations for +15%. In addition, exports beat projections of 8% and are up 22.3%.
The third factor is related to the US dollar. President Donald Trump said that the greenback is too strong, while he refrained from labeling China as a currency manipulator. The President also said he favors low-interest rates. The US dollar suffered a Trump Tumble.
AUD/USD levels
Aussie/USD is trading at 0.7580 at the time of writing. Resistance awaits at 0.7610, which was the bottom of a higher range before the pair dropped. Support is at 0.7550.
More: AUD/USD – Between housing risks, Chinese re-awakening and the Donald [Video]
Share
