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Aussie enjoys upbeat employment data, positive Chinese developments

Australia reported a gain of 17.4K jobs in August, better than  5.2K that had been expected. The unemployment rate dropped to 6.2%. And also some news from China helped this time.

The Australian dollar emerged above 0.70 once again. Can it hold on this time?

Australian jobs report

Apart from the big gain in jobs for August, also last month’s figure was upgraded: from 38.5K to 39.2K. For August, the land down under saw an increase of 11.5K full time jobs and 5.9K part time jobs. So, the composition is also favorable.

The drop in the unemployment came on top of a slide in the participation rate: 65% after 65.1% beforehand, so there’s nothing to get excited about on this front.

All in all, it seems that the slowdown in the mining sector is not killing the Australian labor market.

Chinese developments

Inflation in China is on the rise, at least for consumers: an annual rate of 2% was seen in August, higher than 1.9% predicted and above the 1.6% level seen in July. The Producer Price Index disappointed with  yet another negative number, deeper than estimations: at 5.9%, yet markets focused on the more important CPI.

Another positive development came from the exchange rate: the offshore spot yuan gained 1%, the biggest gain on record in this very controlled currency and reached 6.39 against the dollar, the highest in a month. The efforts to stabilize the yuan seem to be working for now.

AUD/USD

The Aussie was hit hard last week but with calmer markets, it returned to flirt with the 0.70 line. The recent news sent it above 0.70 again and it even topped the previous high of 0.7050, peaking at 0.7092.

In order to break above 0.71, it would probably need more momentum.

More:  AUD/USD: Daily Morning Star; – SocGen

AUDUSD September 10 11 2015 technical chart above 70 after good jobs news from Australia

Yohay Elam

Yohay Elam

Yohay Elam: Founder, Writer and Editor I have been into forex trading for over 5 years, and I share the experience that I have and the knowledge that I've accumulated. After taking a short course about forex. Like many forex traders, I've earned a significant share of my knowledge the hard way. Macroeconomics, the impact of news on the ever-moving currency markets and trading psychology have always fascinated me. Before founding Forex Crunch, I've worked as a programmer in various hi-tech companies. I have a B. Sc. in Computer Science from Ben Gurion University. Given this background, forex software has a relatively bigger share in the posts.