The drama over the Australian employment data continues: the data disappointed with a drop of 29.7K jobs in September, which was actually in line with the original expectations, but different than the super-revised ones that stood on a gain of jobs rather than a loss. The unemployment rate rose from a revised 6% to 6.1%.
AUD/USD initially responded with a dip, but continued higher and is knocking on the door of 0.89.
The moving data
The Australian Bureau of Statistics announced earlier this week that it is removing the seasonal adjustment for the months of the third quarter. This already resulted in a huge revision of the unbelievable gain in August from 121K to 32.1K. It also got many confused.
Australia gained 21.6K full time jobs and lost 51.3K ones. This is a silver lining to the headline figures. The participation rate stands at 64.5%. The average monthly worked ours decreased 0.1% to 1604.2 million hours.
AUD/USD was already on higher ground, having settled above the 0.8820 line following the dovish US FOMC minutes. It did temporarily dip just below 0.88 but climbed back up. The new peak is 0.8884. Resistance is at 0.8910.
The Aussie dipped below the double bottom on Friday but certainly recovered, and we published a call stating Don’t Sell At Current Levels; Correction Risk Intact.
Is the Aussie ready to tackle 0.90 cents against the greenback? Or will the reality of the jobs data eventually kick in?
For more, see the AUD USD forecast. Here is how the recent moves look on the chart: