Australian jobs data graced today’s Asian session trade which showed a stronger -than -expected reading and gave strength for the Aussie dollar to record gains.
The Australian Bureau of Statistics (ABS) reported the unemployment rate fell to 4.2% from 4.6% in December, the lowest level ever recorded since 2008 by exceeding expectations for a decline of 4.5%.
In addition, the Australian economy was also reported to have created an additional 64,800 jobs last month compared to expectations for an increase of 60,000.
As a result, the Aussie dollar traded 0.3% higher, rising around 0.7240 against the US dollar.
Jobs are among the last key data before the Australian Central Bank (RBA) on February 1 which will decide whether their quantitative easing will be reduced or further terminated depending on the economic outlook.
Meanwhile, the appreciation of the Aussie dollar was also supported by China which has reduced interest rates on corporate and household loans as a measure to support economic recovery.
China is Australia’s largest single export market and any policy changes that will support demand are seen as positive for the Aussie dollar.
