- Australian job ads +1.6% the third straight month on gains
- Australian business confidence in focus
- US Dollar trades quietly on public holiday after upbeat NFP data
The Australian Dollar US Dollar (AUD/USD) exchange rate is trading mildly high on Monday. The pair settled +0.1% high on Friday at US$0.7279. At 14:30 UTC, AUD/USD trades +0.05% up at US$0.7284 in quiet trade at the US remained closed for a public holiday.
The risk sensitive Australian Dollar moved cautiously higher amid a broad upbeat mood in the market. Domestic data was also supportive of the Aussie Dollar after data revealed that job advertisements increase for a third straight month. This is a closely watched data point by the Reserve Bank of Australia as it provides insight into the health of the Australian labour market.
Total job advertisements increased 1.6% to an average of 109,103. Whilst it is the third straight month that job ads have risen, the pace of that increase has slowed. Job ads had increased 41% in June and 19.1% in July. In August they rose by 1.6%.
The Reserve Bank of Australia expects unemployment in Australia to continue increasing to around 10% in the coming months as the coronavirus crisis and recent lockdown in Melbourne hamper the recovery in the labour market.
Investor attention will now turn to Australian business confidence data which is due for release on Tuesday morning local time. Investors will be watching closely to see whether the resurgence of coronavirus in the state of Victoria weighed on business sentiment.
The US Dollar had traded broadly flat, experiencing a quiet session given that the US is closed for Labour day. The greenback has maintained gains from Friday when the nonfarm payroll report revealed that the unemployment rate in the US dropped by more than expected falling to 8.4%, down from 10.2% in July.
There is no US data due to be released today.