Australia's October employment data posted an increase of 58k, easily beating market expectations of 15k, as businesses added the most jobs in over 3 years. The employment rate fell to 5.9% -vs- expectations of 6.2% and the participation rate rose to 65%, a touch higher than the 64.9% that was forecast.
The culprits cited for this remarkable rise are housing construction and tourism. If this report is to be believed, and given the volatility that this series has exhibited in the past that's a BIG IF, then it lends credence to the RBA's view that economic prospects have improved to the point where additional easing might not be needed, at least for the remainder of 2015.
- AUD/USD - Daily
Aussie, which was trading around 0.7060, immediately spiked higher to 0.7130 and has since made session highs at 0.7152. This is just below the initial resistance level at 0.7160 where offers are expected to reside. A breach of this could see the pair make an attempt at the zone of resistance that resides between 0.7180 and 0.7200. Ultimately a clear break above 0.7225 would signal that a much needed correction might be underway. (click to enlarge)