Australia reported a gain of no less than 58.6K jobs in October, around 4 times the 14.8K expected. In addition, last month’s drop was squeezed from -5.1K to -0.8K. The unemployment rate fell from 6.2% to 5.9%, also better than predicted.
AUD/USD certainly had reasons to be cheerful, slamming through the battle line of 0.7065 and easily above 0.7110 to peak at 0.7154.
40K full time and 18.6K part time jobs were gained. This is good composition. The participation rate advanced from 64.9% to 65%. Some analysts blame changes in methodology for this number, the equivalent of an NFP worth around 800K in the US.
However, the RBA will certainly not rush to cut interest rates, even if the data is exaggerated.
While some analysts find the numbers hard to believe, the Australian dollar certainly likes it. The next level on the upside is the round number of 0.72,. which provided support back in October. It is followed by 0.7280. 0.7110 turns into support, followed by 0.7065.
More: AUD: Maxed Out? – Credit Agricole
