AUD / USD prints new cycle high on data from major orders

Australia’s highly anticipated labor market data has been released, propelling the Aussie to new cycle heights.

Employment was expected to have risen by just 50,000, driven by Victoria, but that has smashed and unemployment has also improved slightly.

Figures from the Australian Bureau of Statistics (ABS) showed on Thursday that employment has risen by a stellar jump 90,000 in November, after an impressive rise in October, and the unemployment rate declined 6.8%.

Aussie jobs important data points

  • Australia November Employment + 90.0ks / adj (Reuters poll: + 50.0k).
  • Australia Nov Unemployment rate +6.8 pc, s / adj (Reuters poll: +7.0).
  • Australia Nov Full-time employment + 84.2ks / adj
  • Participation of Australia Nov. Rate +66.1 pc, s / adj (Reuters poll: +66.0 pc).

“ Jobs in Australia again exceeded expectations in November, causing the unemployment rate to drop in a sign that massive monetary and fiscal stimulus measures are bearing fruit after the country brought the coronavirus pandemic under control, ” Reuters analysts said.

Update AUD / USD

AUD / USD was slightly hedged overnight by the Fed in a less subdued than expected result, although the bulls have not yet thrown in the towel in the hunt for new cycle highs made based on the data to 0.7587.

The improvement in risk sentiment has resulted in a short-trimming effect on AUD, which could support the spot as the DXY melts towards new lows below the previous days lows at 90.42.

There is still some room for a rise in USD net short positions before overall positioning hits its low of -18% at the end of September.

The CRB (commodity) index also points to higher highs in support of the Aussie.

Notes from the editor

Australia is expected to have added 50,000 new jobs by November. RBA minutes showed that the country has a “significant amount” of spare capacity. AUD / USD is consolidating at its two-year high and is poised to extend its rally.


The Australian Bureau of Statistics unemployment rate is the number of unemployed workers divided by the total civilian workforce. If interest rates rise, it indicates a lack of expansion in the Australian labor market. As a result, an increase leads to a weakening of the Australian economy. A decline in the number is seen as positive (or bullish) for the AUD, while an increase is seen as negative (or bearish).