July 13, 2012
The Australian dollar got wiped out during yesterday's wave of risk aversion, pushing AUD/USD to an intraday low of 1.0100 and dragging AUD/JPY closer to the 80.00 handle. Which reports caused the Aussie to go down under?
Weaker than expected jobs data from the Land Down Under triggered a massive AUD selloff yesterday as the employment change figure showed a 27K drop in hiring. Although their jobless rate came in as expected at 5.2%, the actual employment change reading was much worse than the estimated 0.2K increase in hiring.
This bleak jobs report led most traders to believe that another rate cut from the RBA might be in the cards as the central bank's recent easing efforts don't seem to be enough to prop up the Australian economy.
It didn't help that traders were also pricing in downbeat expectations for today's Chinese GDP release. After all, the Asian giant has been chalking up weaker than expected data recently, which means that their economic growth for the quarter could fall short of expectations as well. After growing by 8.1% during the first quarter of 2012, China is expecting only a 7.7% expansion for Q2. Make sure you keep an eye out for this release because it could dictate risk sentiment for the rest of the trading sessions. Good luck!
Last edited by PipDiddy; 07-12-2012 at 10:10 PM.
"The only cable I watch is the pound baby."