The AUD/USD declined on Thursday and fell below 0.6500. However, despite this correction, the short-term outlook still favors the upside as the Greenback remains under pressure due to weaker US labor market data and declining US Treasury yields.
Data from Australia showed that employment rose by 55,000 in October, surpassing the consensus estimate of 20,000 and significantly higher than the revised figure of 7,800 from the previous month (originally reported as 6,700). Most of the job gains were in part-time positions. The Unemployment Rate rose from 3.6% to 3.7% as expected.
The Melbourne Institute reported a slight increase in the expected one-year inflation rate to 4.9% in November, up from 4.8% in October. Despite the solid employment data, indicating a relatively tight labor market, and the rise in inflation expectations, the AUD/USD dropped during the Asian session as the US Dollar recovered ground.
In the US, most economic data came in below expectations. Continuing Jobless Claims reached the highest since 2022, and Initial Claims rose to 231,000, the highest level in nearly three months. Industrial Production declined by 0.6% in October, exceeding the modest 0.3% contraction expected. On the positive side, the Philadelphia Fed Manufacturing Survey Index rose from -9 to -5.9, and the Kansas Fed Manufacturing Activity index recovered from -8 to -3 in November.
The US Dollar weakened after the data, but the decline was not significant, and it quickly reversed back into positive territory as market sentiment deteriorated.
Data from Australia showed that employment rose by 55,000 in October, surpassing the consensus estimate of 20,000 and significantly higher than the revised figure of 7,800 from the previous month (originally reported as 6,700). Most of the job gains were in part-time positions. The Unemployment Rate rose from 3.6% to 3.7% as expected.
The Melbourne Institute reported a slight increase in the expected one-year inflation rate to 4.9% in November, up from 4.8% in October. Despite the solid employment data, indicating a relatively tight labor market, and the rise in inflation expectations, the AUD/USD dropped during the Asian session as the US Dollar recovered ground.
In the US, most economic data came in below expectations. Continuing Jobless Claims reached the highest since 2022, and Initial Claims rose to 231,000, the highest level in nearly three months. Industrial Production declined by 0.6% in October, exceeding the modest 0.3% contraction expected. On the positive side, the Philadelphia Fed Manufacturing Survey Index rose from -9 to -5.9, and the Kansas Fed Manufacturing Activity index recovered from -8 to -3 in November.
The US Dollar weakened after the data, but the decline was not significant, and it quickly reversed back into positive territory as market sentiment deteriorated.