GBPAUD – Aussie Dollar Surges Higher Post Employment Report12 November, 2015 by Aayush Jindal in Fundamental Analysis, Market Analysis, Technical Analysis
GBPAUD – Aussie Dollar Surges Higher Post Employment Report
- There was a sharp upside reaction in the Aussie Dollar, as the Australian employment report released earlier today posted impressive figures.
- Australian Employment Change released by the Australian Bureau of Statistics came in at 58.6K in October 2015, which was more than the forecast of 15K.
- Australian Unemployment Rate dipped from 6.2% to 5.9% in October 2015.
- Australian participation rate, representing the percentage of the total number of people of labour-force registered a reading of 65%.
GBPAUD Technical Analysis
The Aussie Dollar gained heavily after the employment report was published. There was an upside channel formed on the hourly chart of the GBPAUD pair, which was cleared by the Aussie Dollar buyers to set the pace for more gains.
The GBPAUD pair has now settled below the 100 and 200 hourly simple moving average, which is a bearish sign and might take the pair further lower in the near term.
Any correction from the current levels may find resistance around the 100 hourly simple moving average, which is sitting near the 38.2% Fib retracement level of the last drop from the 2.1571 high.
Australian Employment Report
During the Asian session, there was a major risk event scheduled in Australia, as the Employment Change, which is a measure of the change in the number of employed people in Australia was reported by the Australian Bureau of Statistics. The market was positioned for a change of 15.0K in October 2015. However, the outcome was way above the forecast, as the Employment Change stood at 58.6K. The most impressive part was the Unemployment rate that posted a decline from 6.2% to 5.9%.
The report stated that “Unemployment decreased 33,400 to 739,500. The number of unemployed persons looking for full-time work decreased 30,300 to 526,300 and the number of unemployed persons only looking for part-time work decreased 3,100 to 213,200”.
There was one more positive point to note, as the Participation rate increased 0.1 pts to 65.0%. Overall, the report was impressive and helped the Aussie Dollar to gain traction during the Asian session. The GBPAUD pair moved lower and AUDUSD jumped higher. There are chances of more losses in the near term in GBPAUD if the Aussie Dollar buyers remain in action.