Australian Dollar Strengthens After Better-than-expected Employment Report

Australian Dollar Strengthens After Better-than-expected Employment Report

The Australian dollar advanced against other major currencies in the early Asian session on Thursday after a report showed that the country added more jobs than expected for September.

The Australian economy added 14,500 jobs in September - blowing past forecasts for an increase of 5,000 jobs after shedding 8,800 jobs in the previous month, the Australian Bureau of Statistics said.

Meanwhile, Australia's unemployment rate came in at a seasonally adjusted 5.4 percent in September. That missed forecasts for 5.3 percent after showing 5.1 percent in August.

The aussie climbed to near a 2-week high of 1.2578 against the NZ dollar and a 1-week high of 1.0093 against loonie, compared to yesterday's close of 1.2541 and 1.0050, respectively. If the aussie rises further, it is likely to break 1.265 against the kiwi and 1.015 against the loonie.

Food prices in New Zealand were down 0.9 percent on month in September, Statistics New Zealand said - matching forecasts following the 0.1 percent increase in August.

On a yearly basis, food prices were down 0.3 percent after shedding 0.5 percent in the previous month.

Against the euro, the aussie firmed to a 9-day high of 1.2517 and the next resistance level for the aussie is seen at 1.245. At Wednesday's close, the pair traded at 1.2586.

The aussie hit 1.0268 against the U.S. dollar, its strongest level since October 5. On the upside, the aussie is likely to break 1.03 level. The pair closed deals at 1.0235 yesterday.

Erasing losses, the aussie edged up to 80.23 against the yen, up from yesterday's close of 80.04. The next upside target level for the aussie-yen pair is likely seen at 81.00.

Members of the Bank of Japan's monetary policy board felt that economic conditions warranted the increase of the central bank's asset purchase plan, minutes from the board's September 18-19 policy meeting revealed today.

In addition, the board members noted that price trends may be weakening and inflation is expected to rise slowly.

At the meeting, the BoJ announced a fresh round of stimulus to revive the economy by expanding the asset purchase by another JPY 10 trillion. The total size of the program was lifted to JPY 80 trillion following an additional JPY 5 trillion purchase authorization each for Japanese government bonds and treasury discount bills.

The Cabinet Office said that core machine orders in Japan fell a seasonally adjusted 3.3 percent on month in August.

That missed forecasts for a contraction of 2.3 percent following the 4.6 percent increase in July.

At 1:00 am ET, Japan consumer confidence index for September is due.

In the European session, German final CPI for September and ECB monthly report are slated for release.

U.S. weekly jobless claims for the week ended October 6, trade data for August, import price index for September, Canada trade data and new housing price index for August are likely to influence trading in the New York morning session.