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Currency Market Analysis

Apr 16, 2021 | Currency Market Analysis

Global Themes

Aussie hits one-month highs on jobs numbers; China data in focus

• AUDUSD hits one-month highs after jobs
• USD drops as bond yields retreat
• China GDP key at midday AEST

Jobs boom

The Australian dollar was higher yesterday after another strong result from the local jobs market.

The March employment report found 70.7k jobs were added with the unemployment rate falling from 5.8% to 5.6%.

The result was even stronger considering the participation rate rose strongly.

In fact, at 66.3%, the participation rate was at an all-time high – a remarkable result and usually seen as a sign of strong confidence in employment prospects.

Bond fears ease

The Aussie was also helped as the USD eased.

This week has been dominated by a weaker US dollar with the greenback easing after Tuesday’s inflation reading calmed fears of a price pressure explosion.

Financial markets have cheered the improved sentiment with US shares up strongly overnight.

The Dow Jones gained 0.9% while the technology-focused Nasdaq gained 1.6%. Both markets closed at record highs.

The AUDUSD gained 0.4%, the AUDEUR climbed 0.5% while the AUDGBP was 0.4% higher.

China GDP ahead

Looking forward, today’s Chinese GDP figures will be the major release.

The market is looking for an incredible 19% increase in quarterly growth as the Chinese economy recovers from last year’s slowdown.

China also reports retail sales, industrial production and urban unemployment.

All numbers are due at 12.00pm AEST.

A stronger Chinese number could see the AUD higher this afternoon.

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