Forex: AUD/USD comfortable above 0.8700

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Thu, 08 Jul 2010 10:13:00 +0200

Forex: AUD/USD comfortable above 0.8700

FXstreet.com (Barcelona) - The Aussie extended its rally further up as is well on is way to prolong its winning streak to 3 days. The Aussie has been on the rise since bottoming at 0.8315 on July 6, mainly weighed by the rally on equities coupled with an overnight excellent jobs report.

Earlier in Asia, the pair opened at 0.8640. After a shy start which took the price down to a daily low at 0.8620, the Australian Dollar shot up on the vigorous jobs data, reaffirming its projection as one of the healthiest world economies. Today's ceiling was found at 0.8757 only to retrace slightly down towards 0.8740 (current price).

A solid 45.9k jobs were added in Australia past June, the fourth straight month of gains, and beat market expectations by a large margin. In the details, 18.4k full-time jobs were added and part-time saw 27.5k added. The participation rate rose to 65.2% from 65.1% while unemployment eased off to 5.1%. Certainly the data laid to rest early-week chatter of the RBA cutting rates (!) with risks now skewing towards further tightening” said the Saxo Bank Strategy Team.