The Australian Dollar was the biggest mover during the Asian session on Thursday, supported by upbeat unemployment data from Australia, while dovish FOMC minutes dragged the U.S. Dollar lower. On Thursday, the AUD/USD pair gained 0.21%, climbing above the 94-mark. While fundamentals speak in favour of further appreciation, traders believe the rally will be short-lived, as 67% of opened positions is short.
During the last several months, a slew of promising data was providing a strong boost to the Aussie, while domestic labour market remained one of the key concerns for policymakers. That is why markets welcomed stronger-than-expected data with an optimism. Investors sent the Aussie to a 4 1/2 month high, as the unemployment rate unexpectedly fell to 5.8% in March from a revised 6.1%. It was the biggest monthly drop since August and above markets' expectations. What is more important, the number of people employed soared by 18,100 over the period, climbing after a revised 48,200 a month earlier. The only fly in the ointment was the participation rate that slipped 0.1% to 64.7%. According to the central bank, the employment is likely to weak further, as demand for labour is still fragile due to a massive slowdown in the mining sector. Nonetheless, the latest figures are suggesting the indicator can be moving to its peak.
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