The Australian Dollar have recorded a solid increase against the United States of America currency as it is comfortably back above the US 74¢ after a disappointing US jobs report hurt the greenback. As at Monday 06:35 AEST, the Australian Dollar worth exactly US 74¢ which was an increase against the US 73.90¢ value it has on Friday.
Imdre Speizer from Westpac said that Unites States Dollar index fell 0.5% on Friday, while the Australian Dollar had risen from US 73.75¢ to US 74.47¢.
The trigger that catalyses this change was the US jobs data
Imdre Speizer said in a Monday morning note and i quote:
US non-farm payrolls rose by 138,000 in May (vs 182,000 expected), a weak reading accentuated by an outsized – 66,000 revision to the previous two months,
The three-month average pace of jobs growth now sits at a meagre +121,000, down from +200,000k as recently as February, and the weakest pace since August 2012.
The figures had prompted one US Federal Reserve official to cut the second-quarter gross domestic growth estimate from 4 per cent to 3 per cent.
This weaker update will not derail a 14 June Fed hike but it will certainly give those like Brainard who have started to fret about recent low inflation readings some added ammunition,”
Mr Speizer said.
The Australian Dollar would reap some benefit on Monday,
helped by Friday’s fall in the US dollar (jobs data response), and likely contained by 0.7400-0.7500.
However, the Australian dollar, is still sharply lower against the Chinese Yen, but there is hardly no observable change against the Euro.