Skip to content

CFDs are complex financial instruments and come with a high risk of losing money rapidly due to leverage. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money. CFDs are complex financial instruments and come with a high risk of losing money rapidly due to leverage. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.

Australian dollar dipped after slight miss on jobs data

The Australian dollar lost ground after jobs numbers disappointed; despite the miss, the Australian labour is tight and might impact CPI and the US dollar continues to hold sway. Will it allow AUD/USD to make a new high?

Source: Bloomberg

The Australian dollar had a look lower after the unemployment rate came in at 3.5% for December against 3.4% previously and forecast.

There were -14.6k fewer jobs which were below the 25k forecast to be added and 58k prior.

Although a small miss, the unemployment rate continues to linger near multi-generational lows. Today’s numbers show that the labour market remains robust despite the Reserve Bank of Australia lifting the cash rate 3% from the pandemic emergency low.

The bank has stepped back large rate hikes and the futures market has a 50-50 chance of a 25 basis-point hike priced in for their February 7th monetary policy meeting.

Ahead of that meeting, the crucial fourth quarter CPI print will be released on Wednesday next week the 25th of January. The RBA has said that they expect it to rise to 8% later this year and if the price pressures move toward there sooner than they anticipate.

This would present a conundrum for the RBA and the projected rate path. Across the Pacific, the Federal Reserve continues to make it clear that it is going to continue tightening.

This became apparent overnight when US retail sales and PPI data were weaker than anticipated. The US dollar initially softened and sent AUD/USD to a six-month peak at 0.7063.

Then several Fed speakers reiterated their hawkish stance and the ‘big dollar’ rallied across the board and the Aussie dollar collapsed in the process. They mostly cited a 25 bp rise in rates as being appropriate rather than larger ones.

The Fed also have its Federal Open Market Committee (FOMC) meeting to decide on monetary policy and the market is expecting a 25 bp hike there on the 1st of February. The post-meeting commentary will be closely scrutinised for hints on rates going forward.

The next few weeks could be vital for AUD/USD and could see some clues for direction into 2023.

AUD/USD reaction to data

Source: TradingView

This information has been prepared by DailyFX, the partner site of IG offering leading forex news and analysis. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients.


This information has been prepared by IG, a trading name of IG Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients.
CFDs are a leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your initial deposit, so please ensure that you fully understand the risks involved.

Start trading forex today

Find opportunity on the world’s most-traded – and most-volatile – financial market

  • Trade spreads from just 0.6 points on EUR/USD
  • Analyse with clear, fast charts
  • Speculate wherever you are with our intuitive mobile apps

See an FX opportunity?

Try a risk-free trade in your demo account, and see whether you’re onto something.

  • Log in to your demo
  • Try a risk-free trade
  • See whether your hunch pays off

See an FX opportunity?

Don’t miss your chance – upgrade to a live account to take advantage.

  • Get spreads from just 0.6 points on popular pairs
  • Analyse and deal seamlessly on fast, intuitive charts
  • See and react to breaking news in-platform

See an FX opportunity?

Don’t miss your chance. Log in to take your position.

Live prices on most popular markets

  • Forex
  • Shares
  • Indices

Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.

Plan your trading week

Get the week’s market-moving news sent directly to your inbox every Friday. The Week Ahead gives you a full calendar of upcoming economic events, as well as commentary from our expert analysts on the key markets to watch.

For more info on how we might use your data, see our privacy notice and access policy and privacy webpage.

You might be interested in…

Find out what charges your trades could incur with our transparent fee structure.

Discover why so many clients choose us, and what makes us a world-leading provider of CFDs.

Stay on top of upcoming market-moving events with our customisable economic calendar.