Australian Dollar Sinks On Job Losses, ECB Retreats From Rate Hike Talk


[U][B]Fundamental Headlines[/B][/U]

• [B]NZDUSD [/B]– The New Zealand Business PMI fell to 49.3 from a revised 51.5 in April. It was the second time in three months that the manufacturing sector contracted, as slowing global growth weighed on orders. The country’s record high interest rates are also curbing domestic demand. For more news and resources, visit our New Zealand Dollar Currency Room.
• [B]AUDUSD [/B]– The Australian labor market unexpectedly lost 19,700 jobs in May. It marked the biggest decline since September 2005. Expectations that the economy would add another 13,500 jobs after the 37,500 it generated in April. The weakening labor market may signal that the RBA has tightened enough to cool the economy and may lead them to keep rates on hold at their next policy meeting. For more news and resources, visit our Australian Dollar Currency Room.
• [B]EURUSD [/B]– French non-farm payrolls increased 0.4% in the first quarter. Payrolls increased by 57,400 to a total of 16.1 million. Nevertheless, consumers and companies are still battling rising inflation which may weigh on growth in the coming quarters. ECB president Trichet left the door open for a possible rate hike as the MPC continues to monitor the upside risks. However, council members have since backed off those comments. Discuss the topic and your trade ideas in the EUR/USD Forum.

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