A$ Recovers From Post-Jobs Dip As USD Reverses

AUDUSD fell sharply to 0.6526 following softer-than-expected Australian employment data but has more than rebounded on the back of greenback weakness. The pair is currently steady at 0.6554 after an intraday high of 0.6565. The USD index is down 0.1% as Treasury yields are lower during the APAC session.

• Aussie has broken below 1.07 against kiwi following the weak Australian labour data. It is currently down 0.1% to 1.0706, after a low of 1.069 following the data. AUDJPY is down 0.1% at 97.00, AUDEUR -0.1% at 0.5165 and AUDGBP -0.1% at 0.6015 – all three pairs have rebounded from the post-employment low.
• December new jobs came in well below expectations at -65.1k after an upwardly-revised 72.6k but the unemployment rate was stable at 3.9%. The ABS notes a shift in the timing of employment growth. Trends show that the labour market remains tight but is gradually easing.
• Equity markets are mixed after selling off in recent days. The ASX is down 0.5%, CSI 300 -0.9%, Nikkei up 0.5% and Hang Seng +0.3%. The S&P e-mini is down slightly. Oil prices are moderately higher with WTI at $72.77/bbl. Copper is 0.2% higher and iron ore is now below $132/t.
• Later the Fed’s Bostic speaks twice on the economic outlook at 1230 and 1705 GMT, there will be Q&A at the second appearance. He will be a FOMC member in 2024. On the data front, there are US housing starts/permits, jobless claims and Philly Fed. The ECB December meeting accounts are published and President Lagarde appears.