Fundamental Comment

Upbeat employment data helps Aussie recovers losses


The Australian dollar rose against its U.S. counterpart during the Asian session on Thursday, rising for a second day in a row, shrinking its losses since the beginning of the week, after the release of upbeat employment data from Australia.

Australia's employment change in April came in at 22,600 jobs, compared to forecasts of 19,800, while the previous reading was revised down to minus 700 jobs.

The unemployment rate rose to 5.6%, coming above both previous and forecast readings of 5.5%.

The data helped the Australian dollar to recover against the US dollar, especially as it moves in line with the Australian Central Bank's efforts, which are based on a strong recovery in the labor market to support spending and growth.

The Aussie dollar hit a high of $0.7547 after opening today's session at $0.7514.

The dollar index, which measures the performance of the federal currency against a basket of six major currencies, slumped to a low of 93.0 but currently trading slightly higher at 93.24.

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