Aussie soars on stellar jobs data

Jobs added in June beat estimates by a mile

The Australian economy added a massive 50.9k jobs in June, well above economists’ forecasts of a 17.0k increase and the biggest monthly gain since November. Adding to the positive headline, the vast majority of the jobs were in the full-time category at 41.2K, while just 9.7k part-time jobs were added. The unemployment rate held steady at 5.4%, even with a higher participation rate of 65.7% from 65.5% in May. Whichever way you cut it, it was a very strong report.

The kneejerk reaction in markets was that the Aussie rallied across the board, gaining as much as 0.59% versus the dollar and 0.55% versus the yen. AUD/USD now stands at 0.7427. Australian equities were also given a boost, rising 0.2% on the day.

AUD/USD 4-Hour Chart

Source: Oanda fxTrade

Japan’s trade balance swings back to surplus

Japan recorded a trade surplus in June, though mostly caused by a reduction in imports. Exports rose 6.7% y/y against a forecast of +7.0% while imports rose a below-estimate 2.5% y/y. Economists were expecting a 5.3% gain. As a result, the trade surplus expanded to JPY721.4 billion from a deficit of JPY580.5 billion in May. There wasn’t much of a reaction in currency markets though USD/JPY looks set for a second day of declines after peaking at a six-month high yesterday.

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UK retail sales boosted by World Cup fever?

UK retail sales for June will be the main event for the European data calendar today with economists expecting a 3.9% y/y increase. Bear in mind the second half of the month saw the start of the FIFA World Cup so, if anything, the risk could be a surprise to the upside. The US session has a relatively bare slate, with weekly jobless claims and the Philadelphia Fed survey on tap. Fed’s Quarles is also scheduled to speak.

The full MarketPulse data calendar is here:

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This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.

Andrew Robinson

Andrew Robinson

Senior Market Analyst at MarketPulse
A seasoned professional with more than 30 years’ experience in foreign exchange, interest rates and commodities, Andrew Robinson is a senior market analyst with OANDA, responsible for providing timely and relevant market commentary and live market analysis throughout the Asia-Pacific region. Having previously worked in Europe, since moving to Singapore he worked with several leading institutions including Bloomberg, Saxo Capital Markets and Informa Global Markets, proving FX strategies based on a combination of technical and fundamental analysis as well as market flow information. Andrew began his career as an FX dealer with NatWest and the Royal Bank of Scotland in the UK.
Andrew Robinson

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