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Australian employment tumbles – AUD/USD remains strong

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:

AUDUSD October 9 2014 higher on Australian jobs data

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.