Thursday, July 7, 2011

RBS: Aussie Gained on Positive Employment Data

Australian dollar gained for the second day versus the greenback helped by the encouraging labor market data. The number of people employed in Australia rose in June by 23,400 after declining by 500 in May and 28,300 fall in April. Economists were looking forward to an increase of only 15,000. The unemployment rate remained at 4.9%.

Analysts at Royal Bank of Scotland claim that good situation at Australian labor market increases the chances that the Reserve bank of Australia will raise the interest rates this year.

According to Bloomberg, futures traders estimate the possibility of RBA rate cut to 4.5% by December by 34%, while yesterday this figure was equal to 42%.

Strategists at Nomura underline that the prospects of RBA rate hike depend on Australia’s second quarter CPI data that is released at the end of July.

The pair AUD/USD rose today from $1.0685 to $1.0760. Resistance for Aussie is found at the 7-week maximum of $1.0790 that has so far been tested 2 times. Support level is situated at the 55-day MA in the $1.0670 area. 

daily audusd 16-17

Chart. Daily AUD/USD

writed by FBS Holdings © 2011