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Australian $ scales peaks on US$, euro on jobs surge
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SYDNEY: The Australian dollar leapt to lifetime peaks against the euro and four-month highs on the US dollar on Thursday after spectacular domestic jobs data revived talk that interest rate hikes were in the offing.
The August jobs report beat expectations on all fronts with a near 31,000 jump in total employment and an over 53,000 surge in full-time employment, while unemployment unexpectedly dipped to 5.1 per cent.
The data was so resoundingly upbeat that within minutes of its release, the Australian dollar jumped as far as $0.9237 while bill and bond futures tumbled as speculators rushed to price in the chance of rates rising as soon as next month.
Many thought the combination of rising employment and falling unemployment could fuel price pressures and force the Reserve Bank of Australia (RBA) to resume raising rates at its monthly policy meetings.
In late trade, the Australia dollar was up at $0.9217, well above last week's $0.8910 low. The euro slid as far as A$1.3762 and was struggling at A$1.3775 by early evening.
The kiwi spent the session following the Aussie. It stood at $0.7213, compared with $0.7175 late on Wednesday. One analyst said the kiwi looked to be fairly valued at present, within a $0.7140-0.7350 range.
Near-term support for the kiwi was seen at $0.7200 and below that $0.7160, the previous day's low. Resistance is out at around $0.7259 and then just below $0.7300. It was softer against the neighbouring Aussie, last trading at NZ$1.2739, after hitting NZ$1.2784. -Reuters
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