The Australian dollar which traded against the greenback have jumped more than 0.75% after Australian jobs data came in better than expected and also inaction from the central bank of China PBoC.On data front, Australia’s headline Employment Change have rose by 32.6K, higher than market expectation of 15k while Unemployment Rate also surpassed market expectation …
The Australian dollar which traded against the greenback have jumped more than 0.75% after Australian jobs data came in better than expected and also inaction from the central bank of China PBoC.
On data front, Australia’s headline Employment Change have rose by 32.6K, higher than market expectation of 15k while Unemployment Rate also surpassed market expectation with the reading of 3.5% against 3.6% expectation. The strong jobs market data help propelled the Aussie dollar as market are now anticipating that the Reserve Bank of Australia (RBA) would have enough flexibility to keep raising rates and with the inflation also remain the central bank’s target of 2%, a 25 basis point hike is more likely to be expected in August.
Besides that, the Aussie also supported by the recent decision from PBoC. The People’s Bank of China (PBoC) maintain its benchmark Loan Prime Rates (LPRs) unchanged during today’s Interest Rate Decision. Despite this, the one- and five-year LPRs are maintained at 3.55% and 4.20%, respectively, at the latest. The adjustment parameter for firms was increased by the Chinese central bank from 1.25 to 1.5, which eased limitations on cross-border finance.
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