Compass Global Markets' Blog

Market Update - 7th August 2017 - AUD/USD Drifts Lower As U.S Unemployment Hits New Low At 4.3%

Posted by Patrick Downes on August 7, 2017 at 8:25 AM

The Aussie dollar has come off marginally over the weekend as a result of stronger than anticipated official U.S jobs numbers and a further fall in the U.S unemployment rate to 4.3% on Friday evening. The 4.3% unemployment figure is also the lowest level since April 2001 - which for the historians among us is around the time of the so called tech-wreck, or bursting of the U.S technology stocks bubble. Another similar low in the U.S unemployment figure (4.4%) happened in April 2007 - around the peak of the U.S housing bubble. Read into that what you like but remember that while history doesn't repeat, it sure does have a tendency to rhyme.

AUD/USD above 0.7900 still presents reasonable value but it's clear we've struggled much above 0.8000 more recently. Should we see 0.8000 again it could be prudent to lock in Forwards or at minimum book upcoming spot deals. Whilst it's a public holiday in NSW and bank holiday across Aus we still have a little economic data out today with ANZ Job Advertisements due at 11.30am along with the AIG Construction Index. Whilst these don't have an immediate impact on AUD, they certainly help us view a more macro picture of whats going on in our economy.

AUD EXCHANGE RATES:

AUD/USD – 0.7928

AUD/GBP – 0.6078

AUD/EUR – 0.6732

AUD/NZD – 1.0702

AUD/JPY – 87.796

DATA RELEASES TODAY:

AUD – Job Advertisements at 11.30am

***Above rates are indicative wholesale rates and intended as a guide only***

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Patrick Downes

Senior Corporate FX Dealer

Phone Patrick - 0431 278 632 

  Email Patrick: patrick@compassmarkets.com

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Topics: Market, Report

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