Aussie tumbles as jobless rate hits four-year high

September 12, 2013

The focus of the Asian session on Thursday was on the Antipodean currencies, which are the Australian dollar and New Zealand dollar, also known as the Aussie and the Kiwi.

The Aussie took a tumble after disappointing jobs data that brought Australia’s unemployment rate to a four-year high of 5.8 percent. The number of people employed fell 10,800 in August despite estimates for an increase by 10,000.

AUDUSD dropped to 92.61 U.S. cents at 1:31 p.m. in Sydney from a pre-data 93.42 cents as investors are now expecting the RBA will cut rates by the end of this year.

On the other hand, the New Zealand dollar shot up 70 pips after the Reserve Bank of New Zealand announced no change to the official cash rate. While his was widely expected the central bank’s statement was taken as more hawkish than previous by the market and this propelled the kiwi higher. NZDUSD jumped from $0.8080 to $0.8150.

The U.S. dollar was also weaker elsewhere, against the yen, euro and pound as investors are being cautious ahead of U.S. jobless claims data later today and next week’s FOMC meeting. Some are concerned whether the Fed will being tapering as soon as this month or will delay the move after disappointing U.S. jobs numbers from last Friday’s nonfarm payrolls.

As a result, the dollar was sold off, with USDJPY falling further away from Wednesday's high of 100.59 yen and reached as low as 99.38 yen this morning.

Against the euro, dollar remains lower today again,  as EURUSD traded a tight range between $1.3302 and $1.3323.

GBPUSD was steady at $1.5828 as traders await the Bank of England Governor Mark Carney who will talk about the U.K. economy later today.

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