During an Asian session on Thursday, the AUD/USD currency pair is burdened by yet another dismal employment report in addition to new worries over Taiwan. Despite this, the Australian currency pair is still under pressure at 0.6935, having retreated to a new daily low of 0.6924 before noon that day.
easyMarkets, one of the leading Forex broker Australia predicted while the unemployment rate decreased to 3.4% from 3.5%, employment change decreased to -40.9K from 25K projected and 88.4K prior. Additionally, compared to earlier data and market expectations of 66.8%, the Participation Rate dropped to 66.4%.
It’s important to remember that the Australian Wage Price Index for the 2nd quarter (Q2) put downward pressure on the price of the AUD/USD the day before. However, the statistics showed a 0.7% QoQ increase in the second quarter, which was the quickest growth rate since September 2014.
The findings are nonetheless depressing, though, when contrasted to inflation data, which supports the Reserve Bank of Australia’s (RBA) current cautionary remarks. Along with the Australian employment figures, conflicting worries about China boost AUD/USD sellers. China Securities News had earlier in the day reported that as a part of an investment drive, China could raise 1.5 trillion yuan in extra debt.
The official trade discussions between the US and Taiwan would start early this fall, which seems to rekindle concerns about the US-China conflict and dampen the mood. Additionally, the US is dedicated to upholding peace and stability all across the Taiwan Strait.
It must be remembered that the preceding day, the Fed Minutes tested the bulls of the United States dollar and officials were prepared to limit the rate of increase in interest rates in response to signs of a downturn in inflationary prices. However, it appears that stronger US retail sales for July put downward pressure on the AUD/USD exchange rates.
United States ten-year Treasury yields dropped from the weekly peak of around 2.90% amidst such moves, falling one basis point (bp) to 2.89% as of press time. Furthermore, the S&P 500 Futures record a slight loss after the preceding day’s reverse from a 4-month peak.
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Source: https://www.cryptonewsz.com/aud-usd-corrects-towards-0-69-amidst-australias-employment-fall/