Aussie rises on Jobs report, upside looks limited

Australian jobs report for October, released today was nothing less than a block buster, which helped Aussie to be the best performer against Dollar today.

• Headline unemployment rate dropped by 0.3% from last month to 5.9%, lowest level of unemployment since June, 2014.
   
• And this drop came in the back of increasing participation rate. While in US, participation rate has been declining steadily, participation rate has picked up 0.5% in Australia, over last one year.

• Massive rise in headline payroll, helped reduce the unemployment rate, while participation increased. Employment rose by 58,600 in October, compared to 8000 job loss in September and market expectations of just 15,000 rise. Best part of that is majority of the gains came from full time employment, which rose by 40,000 compared to drop of 10,400 last month. Gains were highest since February, 2015.

Australian Dollar has risen sharply over the release, currently trading at 0.713 against Dollar, up 80 pips today.

However any big rise, without significant Dollar weakness at the moment looks to be limited, any gains above 0.717 might not occur, given Aussie hasn't broken falling resistance line yet as shown in figure.