Australian Jobs Concerns Trigger AUD USD Exchange Rate Dip
The Australian Dollar has made a marginal loss against the US Dollar today, following a mixed set of AU jobs figures.
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Australian Dollar Falls on Underlying Issues of Jobs Stats
Australian unemployment has fallen in July and participation has risen, but the Australian Dollar has still declined against the US Dollar.
On the positive side, recent figures have shown a 27.9k rise in employed persons, as well as a drop from 5.7% to 5.6% for unemployment.
The key figure here has been for full time jobs – while unemployment has fallen, a rise in part-time employment compared to full-time employment is considered a step in the wrong direction.
ASB economists had a negative outlook on the situation, stating;
‘After inflation, this data implies negative real wages growth and so supports the view of ongoing below-trend household consumption growth’.
US Dollar Ticks Higher on Industrial Production
The US Dollar’s latest advance against the Australian Dollar comes after industrial production rose on the year in July.
An annual increase to 2.2% was recorded, but on the month a dip from 0.4% to 0.2% took place.
Weekly Australian Dollar to US Dollar Forecast: US News to Cause Greatest Near-Term Impact
Significant Australian economic news isn’t expected for some time, with the next major announcements coming on August 30th.
Before then, the Australian Dollar could be pushed down by the US Dollar, depending on how upcoming US data prints.
This Saturday will see US consumer confidence scores announced; a marginal rise is forecast. Unless there are any negative factors weighing on trader confidence, this could inspire a USD AUD rise.
The coming week’s main US news will cover home sales on Thursday and Friday, followed by durable goods orders on Saturday.
The latter of these is the most important printing, as it will give a picture of how high demand is for major purchases. That said, the current forecast is for a decline of -2.19% in July. Such a result may trigger a US Dollar slide against the Australian Dollar.
When the next Australian economic news finally arrives, the Australian Dollar could fluctuate. August 30th will see July’s building permits figure announced, along with a measure of construction work in the second quarter.
Permits are forecast to decline, but some minor construction growth is also anticipated.
If both figures rise then the Australian Dollar could appreciate, as this would imply more homes being built, which could reduce the current housing bubble.
Recent Interbank AUD USD Exchange Rates
At the time of writing, the Australian Dollar to US Dollar (AUD USD) exchange rate was trading at 0.7924 and the US Dollar to Australian Dollar (USD AUD) exchange rate was trading at 1.2618.
