Australian Dollar Advances As RBA Debelle Says Labor Market Surprisingly Strong

Date : 04/10/2019 @ 11:42AM
Source : RTTF2
Stock : Euro vs Australian Dollar (EURAUD)
Quote : 1.629675  0.002615 (0.16%) @ 12:02PM
Euro vs AUD share price Chart

Australian Dollar Advances As RBA Debelle Says Labor Market Surprisingly Strong

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1 Year : From Nov 2018 to Nov 2019

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The Australian dollar drifted higher against its major counterparts in the Asian session on Wednesday, after the Reserve Bank of Australia Deputy Governor Guy Debelle sounded optimistic about the nation's labor market and said that a part of weakness in economic growth was temporary, led by the disruption to resource exports and the effect of the drought.

Speaking at the American Chamber of Commerce in Australia Business Luncheon in Adelaide, Debelle said that the domestic labor market has been extremely strong, with the unemployment rate declining faster than expected and employment growth strengthening rapidly.

The strength of the labor market is at odds with the slow pace of GDP growth, he told.

Although business conditions have declined from their high levels of the first half of 2018, it still remain consistent with around trend growth in the economy.

The slowdown in economic growth in second half of last year was mainly driven by weak consumption growth, Debelle said.

The key factor of slowing consumption growth is the low growth in household income, and an increasing expectation that it is likely to remain low.

The aussie advanced to 1.0582 against the kiwi, from a 2-day low of 1.0542 hit at 11:00 pm ET. If the aussie rises further, 1.07 is possibly seen as its next resistance level.

After dropping to a 2-day low of 0.7110 against the greenback at 11:00 pm ET, the aussie reversed direction and rose to 0.7144. The aussie is poised to find resistance around the 0.73 level.

The aussie edged up to 79.45 against the yen, snapping back from a 2-day low of 79.01 touched at 9:45 pm ET. The next possible resistance for the aussie is seen around the 80.5 level.

Data from the Bank of Japan showed that Japan overall bank lending rose 2.4 percent on year in March, coming in at 535.367 trillion yen.

That follows the 2.3 percent annual increase in February.

Following a 2-day decline to 1.5835 against the euro at 11:00 pm ET, the aussie bounced off, reaching as high as 1.5761. The aussie is seen finding resistance around the 1.55 level.

The aussie appreciated to a 5-day high of 0.9526 against the loonie, up from a low of 0.9480 seen at 11:00 pm ET. The aussie is likely to find resistance around the 0.98 level.

Looking ahead, U.K. trade data, industrial production, construction output and GDP data for February are due in the European session.

The European Central Bank announces its interest rate decision at 7:45 am ET. Economists expect the refi rate to be kept at 0.00 percent and the marginal lending facility rate at 0.25 percent.

In the New York session, U.S. CPI and monthly budget statement for March, as well as the Fed minutes from the March meeting are set for release.

At 11:50 am ET, Federal Reserve Governor Randal Quarles will give a speech about the progress on the transition to risk-free rates at the Financial Stability Board Roundtable in Washington DC.

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P: V:fm D:20191119 04:17:10