The Australian economy lost 3.9K jobs in August, worse than 15K expected and after an excellent rise of over 25K in July. Yet not all the details are that bad.
AUD/USD maintains its lower range, below the 0.75 level.
Contrary to the headline number, the other details are upbeat. The unemployment rate beat with a surprising drop to 5.6%, but it comes on top of a slide in the participation rate: a significant move from 64.9% to 64.7%.
Other details are encouraging as well: the economy actually gained full-time jobs: 11.5K. And the loss came due to part-time jobs: 15.4K. These internal data provide more balance
AUD/USD well entrenched
AUD/USD trades in a well-defined range between 0.7440 and 0.75. Further support awaits at 0.7375. Further resistance is at 0.7580.
The Australian dollar has been the weakest link among commodity currencies, and this report does not help it out. While it isn’t a disaster, the headline loss of jobs does not put it in advantage against its peers.
More: AUD/NZD Parity Looms – Credit Agricole
