Australian Dollar Falls, But Recovers, Following Aussie Jobs Report

By Eric Andersen,

THE TAKEAWAY : Aussie Employment Loses 15.4 K Jobs > Employment Change Far Below Expected > AUDUSD Falls, but Quickly Recovers as Traders Await ECB Rate Decision

Employment data published by the Australian Bureau of Statistics show a decrease of 15,400 jobs in the Aussie economy, causing the unemployment rate to rise from 5.1 percent to 5.2 percent. The drop in jobs drew entirely from part time work, leaving full time employment unchanged. The overall participation rate decreased to 65.2 percent from 65.3 percent a month earlier.

Analysts expected the unemployment rate to rise this month and a modest 5,000 job increase in total employment. Neither analysts nor the markets expected a deterioration of such magnitude this month, and traders were forced to price in the change, dragging the AUDUSD downward momentarily. However, the European Central Bank interest rate decision, to be announced later today, was of larger interest to traders, so the AUDUSD quickly recovered from the drop.
DailyFX is the forex news and research arm of FXCM, Inc (NYSE: FXCM), which provides currency trading and brokerage services and is an advertiser on TheStreet websites. Any opinions, news, research, analyses, prices, or other information is provided as general market commentary, and does not constitute investment advice. Dailyfx will not accept liability for any loss or damage, including without limitation to, any loss of profit, which may arise directly or indirectly from use of or reliance on such information. Currency trading involves significant risk of loss. Individual authors may hold positions in the currencies discussed in the article.

Original Article: http://www.dailyfx.com/forex/market_alert/2012/03/08/Australian_Dollar_Falls_but_Recovers_Following_Aussie_Jobs_Report.html

DailyFX is the forex news and research arm of FXCM (NYSE: FXCM), which provides currency trading and brokerage services and is an advertiser on TheStreet websites. Any opinions, news, research, analyses, prices, or other information is provided as general market commentary, and does not constitute investment advice. Dailyfx will not accept liability for any loss or damage, including without limitation to, any loss of profit, which may arise directly or indirectly from use of or reliance on such information. Currency trading involves significant risk of loss. Individual authors may hold positions in the currencies discussed in the article.