Australian lost 7.9K jobs in January against a gain of 15K expected. This is the first disappointing jobs report after 3 consecutive beats in this all important gauge. Also the unemployment rate did not meet expectations with a rise from 5.8% to 6%.
AUD/USD has lost some of its momentum after the publication: it had previously enjoyed the better mood in markets and topped just above 0.7185. The positive mood still supports the pair, but it is on lower ground, at 0.7150. Support awaits at 0.7140.
Also the details certainly add to worries: 40.6K full time jobs were lost and these were compensated by a rise of 32.7K part time jobs. At least some of the rise of the unemployment rate can be attributed to the rise in the participation rate from 65.1% to 65.2%, which is a good sign on its own.
The Australian dollar was also pressured on Chinese data: CPI in the economic giant came out at 1.8% y/y against 1.9% expected. PPI beat with -5.3% against -5.4%. This is mixed report in terms of expectations vs. the actual result but the figures are not encouraging.
More: AUD/USD: Base Of Triangle; – NAB
Here is the current state of play on the AUD/USD 30 minute chart:
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