Australian Dollar to US Dollar (AUD/USD) Exchange Rate Pushed to 6-Month High
Overnight the Australian Dollar to US Dollar (AUD/USD) exchange rate pairing hit fresh highs as the Australian Dollar surged in response to domestic developments.
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While the US Dollar broadly softened following the Federal Open Market Committee’s turnaround on potential interest rate increases, the Australian Dollar rallied as Australia’s unemployment rate dropped.
The decline in the jobless level was the first since September last year and adds to the case for the Reserve Bank of Australia increasing interest rates.
While economists had expected Australia to record an unemployment rate of 6.1 per cent in March, the figure actually came in at 5.8 per cent thanks to an 18,100 increase in positions.
The Australian economy was only expected to add 2,500 jobs in March.
The result pushed the ‘Aussie’ to a six-month high against the US Dollar and helped the currency rally against several of its other major currency counterparts.
Although Australia’s cooling mining sector is likely to contribute to unemployment in the near future, according to chief economist Paul Bloxham; ‘The labour market is stabilising and the unemployment rate may now have passed its peak.’
The ‘Aussie’ remained buoyant even as Chinese trade data showed a surprising slump in China’s imports and exports.
While the US Dollar recovered some ground during European trading thanks to better-than-expected US initial jobless claims figures, the AUD/USD pairing was looking pretty bullish ahead of the publication of China’s consumer price index.
The Australian Dollar is currently trading against the US Dollar in the region of 0.9406 and trading against the British Pound in the region of 0.5613