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Australian Dollar Soared Due to Strong Jobs Data

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Australian dollar rose by close to 1%

The Australian dollar-US dollar currency pair continued on an upward trajectory on November 12, 2015. The pair rose to a high of 0.72 and ended the day at 0.71 levels. Even with the slight fall towards the end of the day, the pair still posted a strong gain of close to 1% for the day. The sharp upward movement was mainly due to the release of the jobs report for October.

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Employment data beat the forecasts

The Australian Bureau of Statistics published the employment data for October on November 12, 2015. The employment change rose to 58,600 against forecasts of 14,800. There was a rise of 40,000 jobs in full-time employment while part-time employment rose by 18,600. The unemployment rate also fell by 0.3% to 5.9%. There was a fall of 33,400 people among those looking for employment. The participation rate rose to 65%. The positivity in the jobs data was also visible in the currency markets. The Australian dollar rose sharply after the announcement of the employment figures.

Impact on the market

Australian ETFs were trading on a positive note on November 12, 2015. The CurrencyShares Australian Dollar ETF (FXA) rose by 0.95%. The iShares MSCI Australia ETF (EWA) was relatively flat with a slight rise of 0.05%.

The Australian ADRs (American depositary receipts) trading in US markets continued the negative spiral. BHP Billiton (BHP) fell by 2.6%—the seventh consecutive trading day loss for the stock. In the mining sector, British-Australian multinational Rio Tinto (RIO) fell by 2.7%, while Australian banking ADR Westpac Banking (WBK) rose by 1.2%.

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