The Australian dollar began the trading week higher, touching a month-high on Monday as the US dollar dropped following the release of the jobs labour data last week; which came in below analysts’ forecast.
The aussie gained 150 pips after the jobs data released on Friday revealed the report missed estimates. The Australian currency gained against 14 out of 16 major currencies, supported by the report which revealed home loans advanced in November.
The aussie came in above the $0.90 mark, adding 50 pips to $0.9042, the highest since Dec 13. The Australian dollar jumped 0.45% higher at $0.9032 at the time of writing.
Australia’s ten-year bond yield dropped four basis points to 4.23%.
November’s home loans climbed by 1.1%, slightly higher than analysts forecast of a 1% rise and also supports the recent data which shows the strength in Australia’s construction sector.
“Home loan and job ads data were both in line with recent trends,” the RBC analysts wrote in a note on Monday. “A solid pace of activity in the housing market but as yet little sign that the broader economy is in a position to meaningfully add to headcount.”
Australia’s employment figures are expected to be released next week as analysts predict an additional 10,000 jobs were added in Australia’s employment sector, following November’s 21,000 rise. In the US, jobs increased by 74,000 in December, below forecasts of a 197,000 rise.
While the US unemployment rate dropped 6.7%, dropping from November’s record of 7%.
The disappointing jobs report released last week set off speculation over the Federal Reserve (Fed) monthly bond purchases. Traders are predicting the Fed officials to delay the expected further-reduction in the banks stimulus.
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