- The Australian dollar surged across the board on Thursday, helped by a strong Australian jobs report for October.
- Brexit chaos weighed on the British pound, seeing it tumble against all of the major crosses.
- The data calendar is quiet today, leaving sentiment, technicals and headlines to dictate direction.
The Australian dollar is higher across the board in late trade on Thursday, continuing to benefit from a strong jobs report for October released earlier in the session.
Here’s the scoreboard at 8.10 am in Sydney on Friday.
AUD/USD 0.7278 , 0.0044 , 0.61%
AUD/JPY 82.68 , 0.49 , 0.60%
AUD/CNH 5.0406 , 0.0186 , 0.37%
AUD/EUR 0.6423 , 0.0028 , 0.44%
AUD/GBP 0.5694 , 0.0129 , 2.32%
AUD/NZD 1.0651 , 0.0014 , 0.13%
AUD/CAD 0.9594 , 0.0016 , 0.17%
After opening the session at .7234, the AUD/USD jackknifed higher following the release of Australia’s jobs report for October.
Full-time employment surged, hours worked rose and the unemployment rate held steady despite an increase in the number of people looking for work.
Despite the release of stronger-than-expected US retail sales data for October, and modest US dollar strength, the AUD/USD went on with the move in European and North American trade, twice testing selling resistance at the .7300 level.
Broadly firmer commodity prices, and another late burst of buying in US stocks that was partially fuelled by rumours that additional US tariffs on Chinese imports have been put on hold — which have subsequently been denied — also helped the Aussie’s cause.
As seen in the chart below, the .7300 level is holding for the moment.
The Aussie also gains against all of the major crosses, especially the British pound which was hammered following yet another drama-filled day in UK politics.
“After edging closer to Brexit, with a draft deal agreed between UK and EU negotiators, UK politics descended into chaos overnight. Brexit Secretary, Dominic Raab, has announced his resignation, along with six other departures from government,” said strategists at ANZ Bank.
“The turmoil has renewed speculation about Prime Minister May’s leadership prospects.”
The Brexit saga weighed heavily on the British pound, seeing it fall heavily across the board.
Turning to the day ahead, there’s nothing that will interest traders on the data front in Asia, leaving technicals, headlines and the performance of Chinese markets to dictate broader direction.
Later in the session, data highlights include German wholesale prices, Eurozone inflation along with US industrial production.
On the central bank front, Mario Draghi will be in action early in the Asian session. Jens Weidmann from the German Bundesbank will also be in action later in the day.