AUD/USD Set to Fluctuate on US Non-Farm Payrolls

07 July 2017 by News Desk   |   SHARE  

The US is set to release its highly influential non-farm payrolls and unemployment rate figures today which could cause some significant Australian Dollar to US Dollar (AUD/USD) exchange rate movements.

May revealed employers had slowed their hiring tendencies, creating only 138,000 jobs. Additionally, job growth in the two months before May were also revised lower by 66,000. However, despite this, the US unemployment rate dropped from 4.4% to 4.3%, marking the lowest unemployment level in 16 years.

Following the release there was some speculation as to whether the Federal Reserve would be encouraged by the data to hike interest rates – the answer was yes. The Fed increased interest rates by 25 basis points, bringing the central bank slightly closer to its 2.0% target.

Federal Reserve policymaker John Williams stated: ‘Gradually raising interest rates to bring monetary policy back to normal helps us keep the economy growing at a rate that can be sustained for a longer time.’

A positive reading in today’s US change in non-farm payrolls number could create an upswing for USD/AUD as investors get ready for another US rate hike later in the year.

Disclaimer: This economic update is provided by FC Exchange a Global Reach Group Company, industry leaders in foreign exchange. Authorised affiliates are permitted to reuse content.

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