Australia gained 7.3K jobs in June, better than a small loss of jobs that was expected. In addition, the unemployment rate stands at 6%, also better than 6.1% that was predicted.
Together with better than estimated Chinese inflation and a rise in Chinese stocks, the Aussie managed to recover, but this may not necessary last too long.
Within the internal data, full time employment is up 24.5K and part time employment is down 17.2K, so it also looks good on the inside. The participation rate is at 64.8%, actually up from 64.7% in May.
In China, inflation came out stronger than expected, with 1.4% instead of 1.2% last time and 1.3% expected. The bigger news from China came from its stock markets: they finally responded to the government’s efforts and bounced back up after many days of big losses.
AUD/USD advanced from the lows, keeping some breathing space from the round 0.74 level. The peak of this move came in at 0.7490, short of the round 0.75 line that was eyed by the RBA some time ago.
But this is now gone, with Aussie/USD trading back down to 0.7430.
Here is how it looks on the chart:
