The currency surged against all of its major peers after a data report showed that the number of jobs created by employers increased by three times more than economists had been forecasting.
According to the Australian Statistics Bureau, the number of Australians employed climbed by 47,300 in February, up from the previous figure of 18,000 and smashed economist forecasts for a rise of 15,000. The report boosted optimism that the Australian Economy is not weakening as much as once feared. The overall unemployment rate remained at 6%.
The currency could have pushed even higher against its peers if a report from China added further credence to signs that the world’s second largest economy is slowing down. Industrial production in China expanded by 8.6% below economist expectations for a rise of 9.5%. The weaker than forecast data follows on from the dismal trade data released earlier in the week.
“What’s interesting is this dynamic with the domestic economy improving while the external environment deteriorates, ultimately the external environment is the more important factor and we think the Aussie dollar will be lower in time,” said an economist from ANZ.
The ‘Aussie’ remains vulnerable to external events such as the ongoing political standoff between Russia and Ukraine.