Forex News: Australian Dollar Falls As Soft Jobs Data Signals

Australian Dollar Falls As Soft Jobs Data Signals RBA Rate-cut

(RTTNews) - The Australian dollar weakened against other major currencies in the Asian session on Thursday, after data showed that Australia's unemployment rate unexpectedly rose to a nearly four-year high in September signaling expectations for further policy easing.

Data from the Australian Bureau of Statistics showed that the jobless rate is Australia came in at a seasonally adjusted 4.5 percent in September. That was above forecasts for 4.3 percent and up from 4.2 percent in August.

The Australian economy added 14,900 jobs last month, missing expectations for an increase of 20,500 following the loss of 11,800 jobs in August.

The participation rate improved to 67.0 percent, exceeding expectations for 66.8 percent, which would have been unchanged.

Crude oil prices fell on following the rapid escalation of friction between the U.S. and China, while oversupply concerns also loom. West Texas Intermediate crude for November delivery was down $0.33 or 0.56 percent at $58.37 per barrel.

Asian stock markets traded mixed, with positive hints of another rate cut in a speech by U.S. Fed Chair Jerome Powell as traders assessed the implications of escalating U.S.-China trade friction.

Speaking on tariffs, Powell stressed that there is a risk that the slow pass-through of tariffs starts to look like persistent inflation. Powell's remarks set the tone for additional interest rate cut expectations.

With the publication of the data being indefinitely postponed due to the ongoing US government shutdown, traders are likely to keep an eye on remarks by several Fed officials.

In the Asian trading today, the Australian dollar fell to nearly a 2-month low of 1.7995 against the euro and a 10-day low of 97.56 against the yen, from yesterday's closing quotes of 1.7896 and 98.26, respectively. If the aussie extends its downtrend, it is likely to find support around 1.81 against the euro and 96.00 against the yen.

Against the U.S. and the Canadian dollars, the aussie dropped to 2-day lows of 0.6480 and 0.9093 from Wednesday's closing quotes of 0.6507 and 0.9140, respectively. The aussie may test support near 0.63 against the greenback and 0.89 against the loonie.

The aussie slid to a 3-day low of 1.1287 against the NZ dollar, from yesterday's closing value of 1.1387. On the downside, 1.11 is seen as the next support levels for the aussie.

Looking ahead, Eurozone trade balance data for August is due to be released at 5:00 am ET in the European session.

At 7:00 am ET, Canada CFIB business barometer data for October and UK NIESR monthly GDP tracker for September are slated for release.

In the New York session, Canada housing starts data for September, U.S. Philadelphia Fed manufacturing index for October, U.S. NAHB housing market index for October and U.S. EIA crude oil data are set to be published.

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