Better Australian job gains, but AUD falls on unemployment rate?
Overnight, we got the release of the latest Australian jobs report, where the economy saw another 43k jobs added, beating estimates of around 15-16k. However, this made little change to the unemployment rate, which came in unchanged at 5.2% - markets were expecting 5.1%.
In response, the AUD pushed lower again and has tested the 0.6900 level, though watching the copper market, prices here are also lower so the currency may be following commodities - though this correlation does slip in and out rather sporadically - and has done in recent weeks and months.
With fears over the slowdown in China, it is hard to see the AUD getting any material push higher, with stock markets also looking a little heavy, though recent gains were not reflected in the AUD price action, so we may see some consolidation develop ahead of the figure level.
As such, we expect the USD to impact from here, with USD/JPY dictating the AUD/JPY rate. For AUD/USD though, we are watching 0.6895, 0.6880 and ultimately 0.6865-60, though 0.6830-35 are the lows from Jan 2016 which are the major prop going forward.