Aussie Down Ahead of Employment Report

The Australian dollar edged down today as the pessimistic outlook for tomorrow’s employment report outweighed the positive fundamental reports today.

Analysts estimated that Australian employment growth slowed to 10,100 jobs in October from 20,400 jobs in September. The unemployment rate is expected to increase from 5.2 percent to 5.3 percent. The report from the Australian Bureau of Statistics will be release tomorrow. The negative employment expectations overshadowed the soaring Westpac consumer sentiment and the rising home loans.

The signs of slowdown in China were also negative for the Aussie. According to the reports of the National Bureau of Statistics, China’s inflation slowed to 5.5 percent in October from a year ago, compared to 6.5 percent in the previous month, while the Producer Price Index was down to 5.0 percent from 6.5 percent.

AUD/USD slumped from 1.0391 to 1.0225 and AUD/JPY tumbled from 80.76 to 79.37 today as of 12:44 GMT.

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