16 Jan 2014
Flash: AUD/USD falls to 2010 lows on unemployment shock - Investec
FXstreet.com (Barcelona) - Jonathan Pryor, Corporate Treasury Analyst at Investec notes that overnight AUD/USD fell as low as 0.8806, levels not seen since August 2010, as the number of people employed down under unexpectedly fell, despite the small increase that had been forecast.
Key Quotes
“The unemployment rate held steady at 5.8% despite the job losses due to a decline in the participation rate to 64.6% from 64.8%. A similar situation to in the US where a falling participation rate is making the unemployment rate look better than it perhaps is.”
“The fall in employment will spark renewed speculation that the RBA will look to continue its easing cycle and reduce rates sooner rather than later. Clients with an AUD exposure may wish to take this into account when considering strategy for 2014.”
Key Quotes
“The unemployment rate held steady at 5.8% despite the job losses due to a decline in the participation rate to 64.6% from 64.8%. A similar situation to in the US where a falling participation rate is making the unemployment rate look better than it perhaps is.”
“The fall in employment will spark renewed speculation that the RBA will look to continue its easing cycle and reduce rates sooner rather than later. Clients with an AUD exposure may wish to take this into account when considering strategy for 2014.”