The Australian Dollar recovered significantly throughout Thursday as the employment report smashed expectations. Opening this morning at 0.7194, the Aussie also found support from US Dollar weakness and another attempt by US Treasury Secretary Mnuchin at reconciliation with China.
Kicking off at home, the Aussie found its feet on Thursday with a positive jobs report. The highlight of the report was the Australian economy adding 44,000 jobs against an expected 18,000. The Australian Dollar jumped significantly on the news to test the key 0.72 level but failed to break through. Ultimately however, it did spur on a positive advance for the Aussie and helped it holds its gains for the day.
The shift in sentiment was also assisted by off-shore forces with the USD weakening slightly after a poor CPI result. The broader interest rate narrative was still very positive however due to a good jobs report earlier in the week, nevertheless the small decline in the CPI reading did weaken the Greenback. The USD also gave ground earlier in the day after US Treasury Steve Mnuchin, a moderate voice within the Whitehouse, reached out to China to continue the trade dialogue. The glimmer of hope of a reconciliation also supported the Aussie well into Thursday.
Moving into the end of the week, the Australian Dollar enjoys a quiet economic calendar with the focus squarely on off-shore events to drive direction.