The Australian dollar continued its downside movement for a fourth day, which dropped against the US counterpart after the Australian retail sales unexpectedly dropped during the month of March, increasing the expectations the Reserve Bank of Australia will delay raising interest rates.
On the other hand, Australia’s currency also declined for a sixth day versus the yen on speculation growth in China will slow as the Asian nation seeks to counter inflation. China is Australia’s biggest trading partner.
Australiahad its biggest annual increase in jobs on record last year and employers added more workers in March than economists forecast, lowering the jobless rate to 4.9%.
The Australian dollar has gained more than 18% in the past year and this week touched the highest level since it was freely floating in 1983.
Australian Friday at 23:30 (Thursday) AUD performance of construction index is due where the previous reading was 39.4 in March.
On Friday, the United States of America will release the anxiously awaited labor data as the speculation is growing over the outlook for growth and pace of the recovery. Starting with the non-farm payrolls at 12:30 GMT, it is expected to show that the U.S. economy has added 196 thousand jobs during the month of April compared with the previous reading of 216 thousand jobs.
Unemployment for April is expected to settle at 8.8% while the yearly average hourly earnings index is expected to rise by 1.7%.
Any improvement in new jobs in the United States could drive the dollar to rise temporarily before benefiting aussie on the improvement in the risk appetite. Downbeat figures and weak employment will feed the fears over the outlook for growth and power the dollar to extend its gains.
Originally posted here
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