Australian Dollar to US Dollar Exchange Rate Forecast: AUD/USD Down 0.4% as Employment Climbs

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One Hundred United States Dollars (USD)

The Australian Dollar to US Dollar (AUD/USD) exchange rate lost 0.4% over the course of the European session as the US ADP employment change report showed a stronger-than-forecast jobs gain.

Australian Dollar to US Dollar (AUD/USD) Exchange Rate Slumps to 0.8041.

During the Australasian session the Australian Dollar to US Dollar currency pair gave up some of its recent gains.

According to forex trader Stephen Innes; ‘Yesterday, the Aussie got a boost above the 0.8100 level, thanks to encouraging November trade deficit data, and China’s purchasing managers’ index which came in slightly better-than-expected. But traders, as has been the case so often of late, sold into rallies, and that continues to be the name of the game with the domestic landscape in Australia waning, and commodities stuck in the doldrums.’

The Australian Dollar to US Dollar (AUD/USD) exchange rate failed to benefit from a modest improvement in Australia’s Performance of Services index as the gauge remained below the 50 mark separating growth from contraction.

The AiG Services PMI advanced to 47.5 in December from 43.8 in November.

Further AUD/USD declines were posted after the US ADP employment change data showed an increase of 241,000 positions in December.

A jobs gain of 225,000 had been expected.

November’s figure was positively revised to 227,000.

As the data ups the odds of Friday’s US Non-Farm Payrolls report surprising to the upside, the US Dollar was supported by the development.

Separate US figures showed an 11.1% increase in MBA Mortgage Applications.

The US trade deficit also narrowed by more-than-expected as a result of falling oil prices, prompting this comment from FastFT; ‘A renaissance in domestic oil production has made the prospect of the US achieving energy independence less outlandish, but has also contributed to the sharp fall in the oil price since June. Overall, US imports fell just over 2.2% to 235.4 billion US Dollars in November.’

Australian Dollar to US Dollar (AUD/USD) Exchange Rate Forecast

During the North American session, additional Australian Dollar to US Dollar (AUD/USD) exchange rate movement could be triggered by the publication of minutes from the latest Federal Open Market Committee (FOMC) meeting.

Hawkish minutes would push the ‘Greenback’ higher.

Investors will also be taking an interest in Australia’s Building Approvals report. Building approvals are believed to have slumped by -3.0% in November, month-on-month, following an 11.4% increase in October.

The Australian Dollar to US Dollar (AUD/USD) exchange rate was trading in the region of 0.8044 during the European session.

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