Aussie Dollar Surges as Employment Report Beats Forecast16 April, 2015 by Aayush Jindal in Fundamental Analysis, Market Analysis, Technical Analysis
- Aussie dollar climbed sharply higher during the Asian session as the employment report released in Australia exceeded the market expectation.
- Australian Employment Change released by the Australian Bureau of Statistics posted an increase of 37.7K, compared to the forecast of 15K in March 2015.
- Australian unemployment rate dropped to 6.1% in March whereas the market was expecting it to stay at 6.3%.
- Aussie dollar gained across most major currencies, including GBPAUD pair which traded below the 0.9200 support area.
Australian Employment Report
Earlier today during the Asian session, there was a critical release in Australia. The Employment Change, which represents the change in the number of employed people in Australia was released by the Australian Bureau of Statistics. The market was not expecting an increase of 15.0K in March 2015, compared to the preceding month and in terms of the seasonally adjusted. However, the outcome was above the forecast, as the Australian employment change came in at 37.7K. The report stated that the full-time employment rose by 31,500 to 8,131,400, and other hand the part-time employment increased by 6,100 to 3,588,900.
The most important point was the decline in the unemployment rate from 6.3% to 6.1% in March 2015, and the unemployment number decreasing by 1,500 to 764,500. The participation rate also climbed from the previous revised reading of 64.7% to 64.8%.
Overall, the report was bullish and helped the Australian dollar to gain pace in the short term.
The GBPAUD pair declined heavily after the release, and there was a sharp bearish pressure noticed. There was a bullish trend line on the hourly chart of the GBPAUD pair, which was breached during the recent slide. Moreover, the pair also settled below the 200 hourly moving average, which could later act as a resistance in the near term.
On the downside, an immediate support lie at 1.9100, and a break below it might take GBPAUD towards 1.9040.
US Initial Jobless Claims
Today, in the US the Initial Jobless Claims, which points the number of people filing first-time claims for state unemployment insurance will be released by the US Department of Labor. The forecast is lined up for a decline of 1K from 281K to 280K. Let’s see how the outcome shapes and affects the US dollar.