- Australia lost 2.9K jobs in April vs. estimated 4.5K gain
- Australian jobless rate up from 6.1% to 6.2% in April
- Australia’s March employment change reading upgraded from 37.7K to 48.1K
- Nikkei down 1.23% for the day
- U.K. parliamentary elections going on
The Australian dollar wasn’t fooled by the downbeat headline jobs figures from the Land Down Under, as the currency advanced against its forex counterparts. While the economy posted a surprise 2.9K decline in hiring for April instead of the projected 4.5K gain, positive revisions to previous releases showed that Australia’s labor situation ain’t so bad.
Australia’s employment report for March saw an upgrade from the initially reported 37.7K increase in hiring to a 48.1K gain while the February reading was revised from 15.6K to 42K. The jobless rate still ticked up from 6.1% to 6.2% as expected while the labor force participation rate held steady at 64.8%.
AUD/USD dipped to a low of .7921 after the jobs release before quickly recovering to the .8000 handle (+0.21%) when forex traders got hold of the data revisions. AUD/JPY spiked down to 94.67 then popped right back up to the 95.50 area (+0.24%) while the Aussie logged in smaller gains against the euro and pound.
Japanese traders are back from their long holiday earlier this week, but their return wasn’t taken positively by the Nikkei as the stock index logged in a 1.23% decline for the day. Forex traders seem to be pricing in the uncertainty ahead of the U.K. parliamentary elections today, as early polls suggest the possibility of a minority government or a potential coalition.
Only a few medium-tier reports are lined up in today’s London trading session, as Germany is set to print its factory orders report at 7:00 am GMT while France will report its trade balance and industrial production data soon after. Franc pairs might also be treated to an extra dose of volatility, with the Swiss SECO consumer climate report and foreign currency reserves data due.
Bonnie and Clyde, peanut butter and jelly, Justin Bieber and his hair. Some things just go well together.
In forex trading, you get better odds at securing pips when your fundamental analysis is complemented by technical analysis. Head on to Big Pippin’s Daily Chart Art for some pip-locking technical setups!