Home Daily Commentaries Non-Farm Payroll figures disappoint – AUD closes above 73 US cents

Non-Farm Payroll figures disappoint – AUD closes above 73 US cents

Daily Currency Update

AUD - Australian Dollar

The Australian dollar closed above 73 US cents on Friday as the domestic economy goes into renewed hope ahead of today’s reopening of NSW. With the easing of restrictions and businesses set to reopen, it has been estimated that the latest COVID-19 lockdown cost the NSW economy at least $16 billion.

Trading in a twenty-point range during the domestic session, volatility reared its head in the lead up to Non-Farm employment results. Unemployment numbers dipped to 4.8%, while US job numbers disappointed market expectations, growing only 198K for the month of September, however, is unlikely to sway the Feds likelihood of tapering in November. The AUD/USD finished the week flat at 0.7305 following intraday highs of 0.7338.

Domestically this week, markets look to our own employment figures due for release on Thursday. The Australian dollar opens this morning at 0.7306. We expect support levels to hold onto moves approaching 0.7280, while any upward push will likely meet resistance at 0.7360.

Key Movers

Risk appetite continued into the Friday bell as US Government debt ceiling decisions were delayed to December. The US Dollar Index (DXY) declined 0.1% following a disappointing non-farm payroll print. Market expectations of 500K jobs added were widely missed, adding just 194K. Equities were marginally lower and the NASDAQ most notably falling 0.5% for the day, breaking a three-day rally.

Elsewhere, the loonie was one of the best performers on the day adding 0.6% against the greenback following its own robust employment figures, adding 157,000 jobs in September. Statistics showed the impressive number was enough to put employment back to pre-pandemic levels and the USD/CAD plummeted to 1.2465 and a two and a half month low. Both the euro and sterling were steady while the greenback gained 0.5% against the yen and posted a new year to date high.

Monday looks to be a quiet day on the market as both Canada and the United States observe public holidays.

Expected Ranges

  • AUD/USD: 0.7280 - 0.7360 ▲
  • GBP/AUD: 1.8500 - 1.8800 ▼
  • AUD/NZD: 1.0480 - 1.0600 ▲
  • AUD/EUR: 0.6280 - 0.6340 ▼
  • AUD/CAD: 0.9075 - 0.9160 ▼