- AUD/USD prints the first daily gains in five amid upbeat Australia job numbers, PBoC inaction.
- Australia Employment Change rose by 32.6K, Unemployment Rate eased to 3.6% in June.
- PBoC keeps one-year, five-year LPRs unchanged but eased cross-border funding restrictions.
- US Dollar consolidates weekly gains around multi-month low on mixed concerns about Fed, China.
AUD/USD takes the bids to refresh intraday high around 0.6825 while posting a quick 25 pip jump on the upbeat Australian jobs report for June. Adding strength to the Aussie pair’s upside move could be the US Dollar’s failure to defend the two-day recovery from a 15-month low amid mixed clues about the US Federal Reserve (Fed) and China. With this, the Aussie pair prints the first daily gains in five at the latest.
That said, Australia’s headline Employment Change rose by 32.6K versus 15K expected and 75.9K prior whereas the Unemployment Rate eased to 3.5% compared to the market’s forecast of staying unchanged at 3.6%.
Also read: Breaking: Australian Unployment Rate drops to 3.5 % in June vs. 3.6% expected
Earlier in the day, the People’s Bank of China (PBoC) kept its benchmark Loan Prime Rates (LPRs) unchanged during today’s Interest Rate Decision. That said, the one-year and five-year LPRs are held intact at 3.55% and 4.20% respectively at the latest. The Chinese central bank, however, eased restrictions on cross-border funding by lifting the adjustment parameter for firms to 1.5 from 1.25.
Elsewhere, the latest comments from a China diplomat and the US preparations for curbing investment and AI chip exports to China renew fears of the Sino-American tussles and weigh on the sentiment, as well as challenge the AUD/USD bulls due to Canberra-Beijing ties.
On the contrary, top-tier and regional banks from the US suggest an increase in profits due to higher rates while front-line tech shares also cheered the downbeat yields. However, the fears of higher for longer rates and a lack of major data/events checked the optimists.
Against this backdrop, the S&P500 Futures print mild losses whereas the US Treasury bond yields trade mixed at the weekly low. Further, the US Dollar Index (DXY) drops 0.25% intraday to retest the 100.00 round figure while snapping a two-day rebound from the lowest level since April 2022 as Fed concerns remain mixed with the recently downbeat US housing and consumer spending data.
Moving on, headlines about China and the Fed will be crucial to determine short-term AUD/USD moves while the US Initial Jobless Claims and Existing Home Sales will decorate the economic calendar.
A fortnight-old ascending support line, around 0.6760 by the press time, restricts immediate downside of the AUD/USD pair, allowing it to again aim for the double tops surrounding the 0.6900 round figure.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.