Thursday, 10 May 2012 09:43
WELLINGTON/SYDNEY: The Australian dollar staged a bit of a bounce on Thursday after a surprisingly upbeat jobs report eased expectations of deep cuts to interest rates, but risk sentiment remained fragile due to uncertainty in the euro zone.
Aussie jumps more than half a cent to $1.0120 after Australian employment far outpaced expectations by adding 15,500 in April. Unemployment rate surprisingly dips to 4.9 pct vs forecasts of a rise to 5.3 pct.
Markets widen the odds of a 25bp-rate cut in June with interbank futures implying a 50-50 chance, down from 78 pct before the data. However, markets still looking for a total easing of around 96 bps by December.
The Aussie is last at $1.0115, off a 4-month low of $1.0021 plumbed overnight. Charts show the bounce above Tuesday's high of $1.0116 could suggest the trend lower is waning. Traders cite stops above $1.0125.
Attention now on Chinese trade data due this ...