Forex analytics and overview

Australian Dollar Yawns After Jobs Report

2022.09.15 18:02


MarketPulse

The is showing little movement today after the solid Australian employment report.

Australian employment rebounds

The Australian labour market remains resilient, as indicated by a solid August employment report. The increase in of 33,500 was very close to the consensus of 35,000, with the gain of 58,800 full-time jobs especially impressive. The release was within expectations and the Australian dollar’s response has been muted. The ticked higher to 3.5%, up from 3.4%.

The employment data likely will not change things for the RBA, which meets on October 6. The RBA has delivered 50bp rate hikes four straight times, but may be looking to ease its tightening and guide the economy to a soft landing. If the RBA needs an excuse to hike by 25bp, it could hang its hat on the slight rise in the unemployment rate.

Australia’s expectations slowed to 5.4% in August, marking a third consecutive decline. This is a dose of good news for the RBA, which wants to ensure that inflation expectations do not become unanchored in an environment of red-hot inflation.

In the US, the August report resulted in plenty of volatility, as stock markets fell sharply before recovering. The rose sharply after inflation came in at 8.3%, higher than the forecast of 8.1%. The markets have been forced to recalibrate after assuming that inflation had peaked and the Fed would make a U-turn on policy. The Fed has been consistent in its hawkish message, and it seems that the markets are finally listening. The FOMC is expected to raise rates by 75bp, with market pricing showing plenty of fluctuation. Currently, there is a 74% likelihood of a 75bp increase, with a 26% of a massive 100pt hike. Gone is the anticipation of a “modest” 50bp rise, as the Fed is expected to continue to stay aggressive until inflation shows unmistakable signs that it has peaked and is moving lower. The Fed is saying that inflation will be brought down to the 2% target in 2023, but it looks like the road to low inflation will have bumps along the way, as the battle with inflation has been difficult and that is likely to continue to be the case.

AUD/USD Daily Chart

AUD/USD Technical

  • AUD/USD has weak support at 0.6737, followed by support at 0.6629
  • There is resistance at 0.6807 and 0.6915

Original Post



Source link

Related Articles

Leave a Reply

Back to top button
bitcoin
Bitcoin (BTC) $ 98,333.35 4.32%
ethereum
Ethereum (ETH) $ 3,481.15 2.30%
tether
Tether (USDT) $ 0.999619 0.14%
xrp
XRP (XRP) $ 2.31 3.13%
bnb
BNB (BNB) $ 699.38 1.46%
solana
Solana (SOL) $ 199.22 5.17%
dogecoin
Dogecoin (DOGE) $ 0.337471 4.70%
usd-coin
USDC (USDC) $ 1.00 0.08%
staked-ether
Lido Staked Ether (STETH) $ 3,479.69 2.34%
cardano
Cardano (ADA) $ 0.934976 2.20%
tron
TRON (TRX) $ 0.256102 1.40%
avalanche-2
Avalanche (AVAX) $ 41.22 6.88%
chainlink
Chainlink (LINK) $ 25.11 4.23%
the-open-network
Toncoin (TON) $ 5.88 5.08%
wrapped-steth
Wrapped stETH (WSTETH) $ 4,130.76 2.26%
shiba-inu
Shiba Inu (SHIB) $ 0.000024 5.95%
sui
Sui (SUI) $ 4.62 1.43%
wrapped-bitcoin
Wrapped Bitcoin (WBTC) $ 97,916.23 4.18%
hedera-hashgraph
Hedera (HBAR) $ 0.320604 12.23%
stellar
Stellar (XLM) $ 0.397938 8.35%
polkadot
Polkadot (DOT) $ 7.53 3.25%
hyperliquid
Hyperliquid (HYPE) $ 30.10 4.36%
weth
WETH (WETH) $ 3,482.12 2.29%
bitcoin-cash
Bitcoin Cash (BCH) $ 468.24 2.33%
leo-token
LEO Token (LEO) $ 9.48 1.47%
uniswap
Uniswap (UNI) $ 14.44 2.35%
litecoin
Litecoin (LTC) $ 108.11 2.27%
pepe
Pepe (PEPE) $ 0.000019 5.13%
bitget-token
Bitget Token (BGB) $ 4.98 18.40%
near
NEAR Protocol (NEAR) $ 5.56 2.63%
wrapped-eeth
Wrapped eETH (WEETH) $ 3,673.73 2.24%
ethena-usde
Ethena USDe (USDE) $ 0.999289 0.12%
aave
Aave (AAVE) $ 369.83 2.01%
aptos
Aptos (APT) $ 9.83 3.16%
internet-computer
Internet Computer (ICP) $ 11.34 6.48%
usds
USDS (USDS) $ 0.999563 0.04%
crypto-com-chain
Cronos (CRO) $ 0.162984 1.41%
polygon-ecosystem-token
POL (ex-MATIC) (POL) $ 0.525779 5.15%
vechain
VeChain (VET) $ 0.052716 9.95%
ethereum-classic
Ethereum Classic (ETC) $ 27.84 2.05%
mantle
Mantle (MNT) $ 1.23 3.44%
render-token
Render (RENDER) $ 7.80 1.44%
bittensor
Bittensor (TAO) $ 501.98 3.70%
fetch-ai
Artificial Superintelligence Alliance (FET) $ 1.40 2.48%
mantra-dao
MANTRA (OM) $ 3.80 0.12%
whitebit
WhiteBIT Coin (WBT) $ 24.89 2.12%
monero
Monero (XMR) $ 192.15 1.25%
arbitrum
Arbitrum (ARB) $ 0.814759 2.39%
dai
Dai (DAI) $ 1.00 0.05%
filecoin
Filecoin (FIL) $ 5.46 6.13%