AUD/USD jumped to a 27 year high following the job figures. The gain of 49,500 jobs was far better than expected. Will we see parity soon? Update on this strong currency.
The Australian job market added 49,500 jobs in September, far better than 20,200 that was expected. Last month’s gain was also positive – a small upwards revision from 30,900 to 31,600.
Australia’s unemployment rate continues to be of envy to other Western countries – it remained unchanged at 5.1%, as expected.
The Aussie jumped from around 0.9750 to just under previous 27 year high of 0.9849 recorded in July 2008. This was already a break of the 0.98 resistance line, but the Aussie stalled at this level during the Asian session.
In the wake of the European session, this level was broken – AUD/USD currently trades at 0.9880, and the move is still going on. As we are in an uncharted area, the next clear level of resistance is 1 – AUD/USD parity.
The Aussie now trades in the highest levels since the currency was allowed to float.
Earlier this week, the RBA decided to leave the interest rate unchanged at 4.50%, in a move that fell short of some expectations. Many had expected a hike to 4.75%. AUD/USD dropped as low as 0.9540 but gradually recovered and returned to the previous levels before the job figures were released.
Note that the dollar is losing further ground across the board, with EUR/USD approaching 1.40, USD/JPY at fresh 15 year lows and USD/CHF digging lower.
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