AUD/USD picks up a bid on better-than-expected Aussie jobs report
- AUD/USD jumped more than 20 pips on better-than-expected Aussie jobs data.
- The economy added 39.9K jobs in November.
- The jobless rate unexpectedly dropped to 5.2%.
The bid tone around the Australian dollar strengthened, pushing the AUD/USD higher from 0.6857 to 0.6880 after the Australian Bureau of Statistics reported an above-forecast jobs number for November.
The Australian economy added 39.9K jobs in November, beating the forecasted rise of 14K, having lost 19K positions in October.
Meanwhile, the jobless rate unexpectedly ticked lower to 5.2% from 5.3% and the labor force participation rate remained steady at 66%, as expected.
While the headline figure bettered estimates, the surge appears to have been fueled by the part-time jobs, which rose by 35.7K in November. The full-time jobs rose by a meager 4.2K.
Even so, the jobs report validates RBA's view that the economy is near a gentle turning point and may keep the AUD better bid during the day ahead.
Note that the prospects for the Australian economy have brightened with the ostensible US-China trade accord. That coupled with the above-forecast jobs report may force traders to price out prospects of aggressive easing in 2020.
Put simply, risks for the AUD are skewed to the upside. At press time, AUD/USD is changing hands at 0.6868.