Greenback unchanged after mixed jobs numbers
The US dollar was relatively unchanged today after the Labour department released the official jobs numbers. In September, the unemployment rate declined to 3.5% from the previous 3.7%. This remains the lowest level in almost 50 years. The U6 unemployment rate dropped to 6.9%. On a negative side, the nonfarm payrolls increased by 136k. This was lower than the consensus estimates of 140k. Manufacturing payrolls declined by more than 2k while private nonfarm payrolls increased by just 114k. This was lower than the previous increase of 133k. Average hourly earnings increased by 2.9%, which was lower than the previous 3.2%.
The price of Bitcoin declined as traders reacted to news that PayPal was considering leaving the Libra slate of backers. According to Financial Times, the company has continued being concerned about the scrutiny Libra has faced during the past month. PayPal becomes the latest company to express concerns about the currency. This week, it was reported that Visa and Mastercard were also considering leaving. The exit of these financial giants could incentivise other companies in the Libra Association to leave.
The Australian dollar rose slightly against the USD even after the country released weak retail sales numbers. According to the bureau of statistics, the country’s retail sales numbers rose by 0.4% in August. This was better than July’s decline of -0.1%. Still, it was lower than the consensus estimates of 0.5%. Meanwhile, the Australian central bank released the financial stability report. In it, the members said that the economy is facing challenges brought about by the global uncertainties of trade. The members also said that the 75-basis point cuts had started to generate positive impacts.
The BTC/USD pair declined slightly to the current level of $8150. On the daily chart, this price is slightly below the 50% Fibonacci Retracement level. This price is also below the 14-day and 28-day moving averages. The RSI has also moved below the oversold level. The main and signal lines of the relative vigor index have continued to slide as well. The pair could continue moving lower to below the $8,000 level.
The AUD/NZD pair was little changed today. The pair is trading at 1.0680, which is along with an important support. On the hourly chart, the pair has formed a double bottom pattern, which is an indication that the price could start moving higher. This is further supported by the falling average directional index, which is currently at 18. Further, the pair is trading along the lower line of the Envelopes indicator. The pair could start a reversal.
The EUR/USD was relatively unchanged as traders received the non-farm payrolls. The pair is trading at 1.0965, which is slightly lower than the intraday high of 1.1000. On the four-hour chart, the price is moving towards the middle line of the Bollinger Bands. The RSI has been moving higher and is currently at 55. The pair will likely make some major moves during the American session as traders digest the employment data.