The Australian dollar surged higher against other major currencies in early Asian trading on Thursday after the release of the nation's surprise strong jobs data for April.
Data from the Australian Bureau of Statistics showed that the number of employed persons rose by 15,500 to 11.5 million in April after adjusting to seasonal variations. Analysts had forecast total employment to fall by 5,000.
The rise in jobs drew mostly from part time work, which added 26,000 jobs to payroll.
Meanwhile, the unemployment rate fell to 4.9 percent in April from 5.2 percent in March. Economists were looking for a rise in jobless rate to 5.3 percent.
Today's upbeat jobs data suggested a decreased likelihood of a Reserve Bank of Australia rate cut next month.
The Australian dollar that ended yesterday's trading at 1.0044 against the U.S. dollar rose to 1.0121. The next upside target level for the aussie-greenback pair is seen at 1.015.
The Australian currency has declined against the U.S. dollar at the beginning of this month as the Reserve Bank of Australia's bigger-than-expected half percentage interest rate cut dragged down the currency.
The RBA cash rate was slashed by 50 basis points to 3.75 percent on May 01 in a bid to support economic growth. The rate cut was steeper than the 25 basis point-reduction expected by economists.
RBA Governor Glenn Stevens said in a statement that the decision was based on the Policy Board's view that economic conditions have been somewhat weaker than expected amid a moderation in inflation.
The central bank has retained the cash rate at 4.25 percent at each of the past three meetings after reducing it by a quarter point each in November and December 2011.
The Aussie also extended its slide as traders expressed concerns about the recent elections in France and Greece and their potential impact on efforts to address the European debt crisis.
Australia's wider-than-expected trade deficit also weakened the aussie early this week.
Australia posted a seasonally adjusted merchandise trade deficit of A$1.587 billion in March, the Australian Bureau of Statistics said on May 08. That missed expectations for a shortfall of A$1.4 billion after showing a deficit of A$754 million in February and a A$843 million deficit in January.
Elsewhere, Australia's Treasurer and Deputy Prime Minister Wayne Swan said in his 2012-13 budget speech on Tuesday that the country's budget will return to a A$1.5 billion surplus in 2012-13 ending four years of deficits, largely due to reductions in defence expenditure and spending on foreign aid.
"This Budget delivers a surplus this coming year, on time, as promised, and surpluses each year after that, strengthening over time."
However, after hitting near a 5-month low of 1.0023 in yesterday's New York morning session, the aussie-greenback pair reversed its direction and has gained 1 percent thus far.
Against the Japanese yen, the Australian dollar edged up to 80.73, compared to Wednesday's close of 79.99. On the upside, 81.0 is seen as the next target level for the Australian currency.
The aussie-yen pair that lost 4.3 percent early this month to hit near a 4-month low of 79.75 on May 09 rebounded thereafter and has advanced 1.2 percent thus far.
The Australian dollar climbed to a 2-day high of 1.2805 against the euro and if the aussie gains further, it may likely target the 1.278 level.
The aussie that fell to a 5-day low of 1.2909 against the euro in the European session yesterday recovered slightly in New York deals and ended the day's trading at 1.2877.
The Australian dollar that traded at a fresh 7-month low of 1.0076 against the Canadian dollar in late New York session on Wednesday has appreciated 0.6 percent in early Asian deals and hit a 2-day high of 1.0134. The next upside target level for the aussie-loonie pair is seen at 1.016.
After hitting a low of 1.2807 against the New Zealand dollar in early Asian deals at 8:20 pm ET, the Australian dollar strengthened. At present, the aussie-kiwi pair is trading at 1.2860, compared to Wednesday's close of 1.2814. If the pair rises further, it will break yesterday's fresh 1- 1/2 -month high of 1.2867 and target the 1.290 level.
Investors now focus on the European session, in which ECB monthly report, U.K. industrial production and trade data for March are due for release.
At 7:00 am ET, Bank of England will announce its interest rate decision. The central bank is widely expected to retain its interest rate at 0.50 percent.
The U.S. trade data for March, weekly jobless claims for the week ended May 5 and export & import price indexes for April, Canada's trade data and new housing price index for March are likely to influence trading in the New York morning session.
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Forex News
June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.