At press time, the AUD/USD is reporting marginal gains at 0.7117, despite the dismal Aussie jobs report.
The Australian economy added 37K jobs in November, beating the estimated figure of 20K by a wide margin. The full-time jobs, however, dropped by 6.4K, following a 42.3K rise in October. Further, the jobless rate ticked higher to 5.1 percent.
The drop in the full-time jobs and the uptick in the unemployment rate takes the shine off the impressive headline figure. The data is unlikely to change the market perception that the RBA is unlikely to hike rates any time soon.
The Aussie dollar is still flashing green above 0.71, having hit a low of 0.7087 in the overnight trade. However, the path of least resistance is to the downside, courtesy of hawkish Fed hike and the dismal jobs report.
The AUD, therefore, may drop into the red below 0.71, especially if the equity markets trade risk-averse.
Source : FX Street