The Australian economy gained 42.7K jobs in November, nearly triple the early expectations for rise of 15.2K. However, this came on top of a downwards revision for October: 13.7K instead of 24.1K originally reported. The unemployment rate edged up from 6.2% to 6.3%. This contradiction was expected.
AUD/USD reacted with a rise to 0.8373, but it wasn’t sustained.
The lack of momentum for the Aussie comes not only from existing worries about China but also due to the internal numbers of the report. Only 1.8K full time jobs were gained, and 40.8K were part time. This is not an optimal composition.
At least the unemployment rate figure is minor: the rate rose by only 0.01% but it triggered a rounding up of the number. It also comes on top of an advance in the participation rate.
The Australian dollar’s recovery from the abyss has been led by a sell off of the US dollar, which was greeted by eager sellers, especially in the US session. Despite an OK report, the Aussie fails to gain.
More: AUD Weakness To Be Front Loaded – Barclays
Support appears at the round number of 0.83, followed by 0.8260. Resistance awaits at 0.8360. For more, see the AUDUSD forecast.