FX.co ★ Ray of positive: Australian dollar celebrates victory

The Australian currency began with positive news on Thursday morning, October 17. The aussie sharply grew after the publication of strong employment data, analysts said.

Economic statistics on the labor market in Australia, according to which the unemployment rate fell by 5.2% in September this year, became a powerful catalyst for this price surge. This is 0.1% less than expert forecasts and the indicator recorded in August 2019. The Australian dollar began a successful assault on price peaks and consolidated at 0.6790.

In the first month of summer, employment in Australia increased by 17,700 jobs. This impressive figure exceeded the estimates of analysts who had expected an increase of 15 thousand. As for the August figure, it was revised up to 37,900 jobs. Previously, its value corresponded to 34,700 jobs. An increase in full-time employment was also recorded in September 2019. The increase concerns 26,200 jobs, analysts said.

Positive statistics influenced investors' expectations regarding a possible interest rate cut by the Reserve Bank of Australia (RBA). Earlier, before the release of statistical data, the market predicted a 40% probability of a rate cut next month. After the publication on the labor market in Australia, this probability decreased by half.

According to Forrester David, currency strategist at Credit Agricole, the largest bank, the current situation is very favorable for the Australian currency. The aussie expects strengthening, which is facilitated by a combination of strong statistics on employment in the country and weak data on retail sales in the United States. A similar combination was in the hands of the aussie, the expert said.

The AUD/USD currency pair, after taking off to the levels of 0.6785–0.6790, worked back to the level of 0.6757. Analysts had expected consolidation near this bar, but the pair managed to go up, beyond the range. The current target was the level of 0.6786, which the pair successfully overcame. Currently, the AUD/USD pair is trading within 0.6827-0.6829. The aussie enjoys the victory and intends to gain a foothold in their positions, experts conclude.