RSS ForexLive Asia-Pacific FX news wrap: AUD jumps after strong jobs report

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 RSS ForexLive Asia-Pacific FX news wrap: AUD jumps after strong jobs report

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We had news today that Trump has invited Chinese President Xi to Trump's inauguration. This softened the USD a touch on the perception that it indicates better relations between the US and China. That's a long bow to draw on an invitation, but there you go.

From Australia we then had data showing employment rose more than what was forecast in November. Over 35,000 jobs added. Notably:

  • Full-time employment surged by 52,600. Part-time decreased by 17,000.
  • The unemployment rate came in under 4% for the first time since March, dropping to 3.9%.

The strong employment data saw the pricing for a February interest rate cut by the Reserve Bank of Australia (RBA) cut back, from above 65% prior to the release to under 55% after. The Australian dollar jumped.

From China today we had the announcement the country will expand its private pension plan nationwide. This begins from Monday next week (December 15). At the margin this should support stocks.

Also, the People’s Bank of China pushed back on the speculation it’d allow the yuan to weaken if hefty Trump tariffs were imposed. PBOC-backed state media said the yuan is on a solid footing.

Earlier, gold dipped in price at the Chinese cash open.

USD/JPY dropped back to just under 152.00. Its since bounced but remains in the lower half of its session range. News and data flow from Japan was very light.

AUD:

This article was written by Eamonn Sheridan at www.forexlive.com.
 
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