The Australian economy gained 13.5K jobs in January, better than around 10K expected. Good news also came from an upwards revision to the previous report: positions increased by 16.3K in December instead of 13.5K originally announced.
So far, it’s good news. However, January saw a massive drop of 44.8K in full-time jobs while part-time employment leaped by 58.3K. Markets and the RBA are looking to see long-term employment and preferably full-time.
In addition, the participation rate has dropped from 64.7% to 64.6% which means the overall workforce is shrinking.
The Australian dollar wobbled around the initial publication and as time passes by, AUD/USD slips from the highs of 0.7730 and dips its feet under 0.77. The initial beat of estimates sent the pair higher in an initial spike that was short-lived.
Earlier, positive US data helped the greenback advance higher, but then markets reversed the move and the US dollar dropped across the board. While the Fed is upbeat and data is positive, Trump is causing some worries.
More: AUD/USD: Pending Bullish Signal On A Weekly Close Above 0.7730/50 – NAB
Here is how the recent move looks on the chart:
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