AUD Takes Hit Despite Continued Fall In Unemployment

Price action across the G10 FX space painted a mixed picture, with most currency pairs sticking to relatively tight ranges. AUD blipped higher upon the release of the Australian jobs report, but retreated as the data received some more scrutiny. The main parameters were strong, as the downtick in unemployment was larger than expected, the participation rate climbed to a record high and employment growth topped forecasts. However, the latter was driven solely by part-time positions, while almost 21k full-time jobs were shed. AUD/USD printed a fresh three-week high before pulling back under the 50-DMA and approaching the $0.7700 figure.

• NZD outperformed the rest of the G10 pack. CAD also fared well, while NOK went offered.
• JPY held firm, although it is a Gotobi day today. Its safe haven peer CHF lost ground.
• The DXY extended yesterday's losses, but rejected support from its 50-DMA.
• The PBoC set its central USD/CNY mid-point at CNY6.5297, 5 pips shy of sell-side estimate. Nonetheless, USD/CNH chewed into yesterday's losses, eventually returning above the CNH6.54 mark.
• KRW softened after the BoK left interest rates unchanged.
• Focus turns to U.S. initial jobless claims, industrial output & retail sales, final German, French & Italian CPIs as well as comments from Fed's Mester, Daly & Bostic and Riksbank's Ingves.