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The highly anticipated Australian labour market data has been released, boosting the Aussie to new cycle highs. 

Employment was expected to have risen by just 50k, driven by Victoria, but that has been smashed and the unemployment has also improved slightly.

Aussie jobs key data points

  • 16-Dec-2020 18:30:01 – AUSTRALIA NOV UNEMPLOYMENT RATE +6.8 PCT, S/ADJ (REUTERS POLL: +7.0)
  • 16-Dec-2020 18:30:01 – AUSTRALIA NOV FULL-TIME EMPLOYMENT +84.2K S/ADJ
  • 16-Dec-2020 18:30:01 – AUSTRALIA NOV PARTICIPATION RATE +66.1 PCT, S/ADJ (REUTERS POLL: +66.0 PCT)

AUD/USD Update

AUD/USD was somewhat capped by the Fed overnight in a less dovish than expected outcome, although the bulls have not thrown in the towel just yet in pursuit of fresh cycle highs which were made on the data to 0.7587.

The improvement in risk sentiment has prompted some short-trimming effect on AUD which may underpin spot while the DXY melts away to fresh lows below the prior days low of 90.42.  

There is still some room for USD net shorts to increase before aggregate positioning reaches the -18% lows seen in late September.

The CRB index (commodities) also points to higher highs in support of the Aussie. 

More to come…

Editor’s notes

Australian Employment Preview: Positive surprise despite tepid forecasts

Australia is expected to have added 50,000 new jobs in November. RBA Minutes showed that the country has a “significant amount” of spare capacity. AUD/USD is consolidating at two-year highs and poised to extend its rally.


The Unemployment Rate release by the Australian Bureau of Statistics is the number of unemployed workers divided by the total civilian labor force. If the rate hikes, indicates a lack of expansion within the Australian labor market. As a result, a rise leads to weaken the Australian economy. A decrease of the figure is seen as positive (or bullish) for the AUD, while an increase is seen as negative (or bearish).