Australian Job’s data jumped by a surprise 64,000 vs 25,000 expected with the participation rate rising from 66% to 67% reflecting a healthy jobs market. This took price in the pair from the weekly low of 0.6380 to 0.6460 post the result. The unemployment rate stayed steady at 3.7%. US CPI y/y accelerated yesterday printing at 3.7% vs 3.6% mainly due to a jump in energy prices. This perhaps proves that getting inflation lower needs a sharper slowdown in the economy. CPI rose 0.6% from July, the fastest pace in more than a year. Adding to the Fed’s problems, Retail Sales also rose in August 0.6% based on 0.1% forecasts. Next week we aren’t expecting the Fed to hike past 5.5% but the chances of a rise in the fourth quarter has risen to 50/50. Buying USD above 0.6400 looks the ticket right now.
The current interbank midrate is: AUDUSD 0.6433
The interbank range this week has been: AUDUSD 0.6359- 0.6459