Aussie dips despite excellent job numbers

The Australian dollar has posted slight losses in the Thursday session. Currently, the pair is trading at 0.7780, down 0.20% on the day.

Australian employment sparkles

February employment numbers blew past expectations, another indication that Australia’s recovery is deepening. The economy created 88.7 thousand, crushing the estimate of 30.5 thousand. All of these jobs were full-time positions, reflecting the recent shift in employment towards full-time employment. The unemployment rate nosedived from 6.3% to 5.8%, the first time it has fallen below the 6% level since March 2020, prior to the Covid-19 pandemic. The unemployment rate has been steadily falling since October, but the latest drop was truly impressive. The Australian dollar rose after the employment release, but then reversed directions. Still, with the economy moving in a positive direction, the Aussie appears to have room for further gains.

Fed reiterates dovish stance

The Federal Reserve meeting on Wednesday did not contain any surprises, as policymakers left monetary policy unchanged and reaffirmed the central bank’s dovish stance. The Fed’s dot plot was more dovish than expected, with most FOMC members not anticipating a rate hike prior to 2024. At the same time, the Fed’s economic outlooks were upbeat, with the growth forecast upwardly revised to 6.5% this year, compared to 4.3% beforehand. Inflation is expected to rise to 2.4% in 2021, but Fed Chair Powell noted that he expected this rise to be a temporary spike that would not affect the Fed’s commitment to maintain interest rates at ultra-low levels. The Fed did not provide any clues about plans to taper QE, and the taste left in the investors’ mouths from the Fed meeting was decidedly dovish.

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AUD/USD Technical

 

  • In the Asian session, AUD tested resistance at 0.7832. This line had not been tested since March 3. Above, there is resistance at 0.7880
  • On the downside, 0.7652 is the first line of support. It is followed by support at 0.7546

For a look at all of today’s economic events, check out our economic calendar. www.marketpulse.com/economic-events/

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.

Kenny Fisher

Kenny Fisher

Market Analyst at OANDA
A highly experienced financial market analyst with a focus on fundamental analysis, Kenneth Fisher’s daily commentary covers a broad range of markets including forex, equities and commodities. His work has been published in several major online financial publications including Investing.com, Seeking Alpha and FXStreet. Based in Israel, Kenny has been a MarketPulse contributor since 2012.
Kenny Fisher

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