12 Feb 2015
AUD/USD: Thats enough of that rally, capped 0.7781
FXStreet (Guatemala) - AUD/USD is currently trading below the highs and has been capped there, trading around the mid pint of the 0.77 handle.
AUD/USD has been as high as 0.7781 with a low of 0.7644, trading in a wide range as markets continue to play out volatile swings in a politically packed week along with key domestic events for the pair. From Australia, overnight, we had a dismal set of jobs numbers. Australia dropped 28.1k full time positions after gaining 46.4k in December and part time positions increased by almost 16k. Before that, the market had been fixated on the Eurogroup meeting with Greeks FM. However, this didn't not come to any joint conclusions and then today there was a ceasefire in Ukraine that has appeared to have been reached. The greenback has been reacting to all of the above.
However, back to more domestic data on Australia, the weaker than expected Australian employment data has increased speculation of a rate cut next month, as noted by analysts at Brown Brothers Harriman. "Speculation has also increased for an additional cut in Q2. The unemployment rate rose to 6.4% from 6.2%, even though the participation rate was unchanged." This adds to the divergence between the RBA and Fed and the analysts at Brown Brothers Harriman explained that the Australian employment data is particularly volatile, and "Although the market may be exaggerating its importance, we agree with the general direction. We expect additional rate cuts."
AUD/USD has been as high as 0.7781 with a low of 0.7644, trading in a wide range as markets continue to play out volatile swings in a politically packed week along with key domestic events for the pair. From Australia, overnight, we had a dismal set of jobs numbers. Australia dropped 28.1k full time positions after gaining 46.4k in December and part time positions increased by almost 16k. Before that, the market had been fixated on the Eurogroup meeting with Greeks FM. However, this didn't not come to any joint conclusions and then today there was a ceasefire in Ukraine that has appeared to have been reached. The greenback has been reacting to all of the above.
However, back to more domestic data on Australia, the weaker than expected Australian employment data has increased speculation of a rate cut next month, as noted by analysts at Brown Brothers Harriman. "Speculation has also increased for an additional cut in Q2. The unemployment rate rose to 6.4% from 6.2%, even though the participation rate was unchanged." This adds to the divergence between the RBA and Fed and the analysts at Brown Brothers Harriman explained that the Australian employment data is particularly volatile, and "Although the market may be exaggerating its importance, we agree with the general direction. We expect additional rate cuts."