Economic news (14 March 2013) – The Australian economy appears to be gaining momentum over the last weeks as series of positive economic data has been released. The latest portion showed a much better-than-expected employment change as the number of employed people increased by 71,500 in February, far exceeding the forecast of a 9,000 rise and the 13,100 figure revealed in the previous month. The unemployment rate remained steady at 5.4%.
The Australian dollar reacted almost immediately to the data and climbed against all of its major counterparts, jumping to a more than one-month high against the dollar, touching $1.0376 before hovering at around $1.0362 at the time of writing.
Analysts commented that the strong employment data could reduce the pressure on the Reserve Bank of Australia for further easing the monetary policy and cutting the interest rate during its next meeting in April. The RBA lowered the interest rate to 3% in December, and has kept it unchanged since then.
The surprisingly solid data also sent the bonds yields to their highest level since April last year, registering its biggest daily rise since July.
Some investors are anticipating that the Aussie’s high performance may trigger the AUD/USD, passing the 1.04 mark if the Eurozone and the US also release strong economic results during today’s and tomorrow’s sessions.
Technical analysis
AUD/USD
At yesterday’s session the Australian dollar was moving in the range of 1.0280-1.0330. This morning the currency pair was trading at 1.0350-1.0370.
Should the Australian dollar successfully overcome the resistance zone at 1.0365-1.0400, its aim will be reaching and testing the zone at 1.0415-1.0430. If successful, the upward trend will continue to 1.0450-1.0470. If it falls below the support zone at 1.0355-1.0340, the next support zone is expected to be at 1.0315-1.0300. In case of a breakdown, the downward trend will continue to 1.0270-1.0250.
Source: dfmarkets.co.uk
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