The Australian dollar strengthened against other major currencies in the Asian session on Thursday, after data showed that the nations’ unemployment rate fell more than expected in May.
Data from the Australian Bureau of Statistics showed that the unemployment rate in Australia came in at a seasonally adjusted 5.5 percent in May. That beat forecasts for 5.7 percent, which would have been unchanged from the April reading.
The Australian economy added 42,000 jobs in May, well above forecasts for 10,000 following the upwardly revised 46,100 added in the previous month.
Wednesday, the Australian dollar had risen 0.92 percent against the U.S. dollar, 0.52 percent against the yen, 0.59 percent against the euro, and 0.32 percent against the Canadian dollar. Meanwhile, the aussie fell against the NZ dollar.
In the Asian trading, the Australian dollar rose to nearly a 5-week high of 1.4709 against the euro, a 3-day high of 1.0096 against the Canadian dollar and more than a 2-week high of 1.0551 against the NZ dollar, from yesterday’s closing quotes of 1.4781, 1.0051 and 1.0437, respectively. If the aussie extends its uptrend, it is likely to find resistance around 1.44 against the euro, 1.02 against the loonie and 1.07 against the kiwi.
Against the U.S. dollar and the yen, the aussie advanced to 0.7631 and 83.60 from yesterday’s closing quotes of 0.7589 and 83.15, respectively. The aussie may test resistance near 0.77 against the greenback and 85.00 against the yen.
Looking ahead, Swiss PPI for May, U.K. retail sales data for May and Eurozone trade balance for April are due to be released later in the day.
At 3:30 am ET, the Swiss National Bank’s interest rate announcement is due. The central bank is expected to maintain the LIBOR rate at -1.25 percent.
At 3:40 am ET, Reserve Bank of Australia Assistant Governor Guy Debelle is expected to speak at the Thomson Reuters industry event, in Sydney.
The Bank of England will announce its interest rate decision at 7:00 am ET….