The AUD has reached a historic record against USD due to the encouraging numbers showed by Australia’s labor market (the Australian Employment Change was released tonight). The Employment Change shows 49,500 jobs increase in September, exceeding by far the 20,200 increase predicted. Septembers numbers follow the August ones (31,600 increase) testifying to the recovery of Australian labor market. The Unemployment Rate doesn’t fall behind with 5.1%, just as analysts expected. Following these numbers AUD soars up to 0.9900 against USD, rising from USD0.8060 (AUD’s strong support) reached in June. Since AUD broke USD’s resistance at 0.9400 about a month ago, it’s unstoppably moving forward. It might even have a shot at crossing the 1.0 for the first time. Tomorrow (Friday, October 8th) the US Non-farm Employment Change will be announced, and it is expected to show improvement in the US labor market. Good US number might stop AUD’s rally, while not so great numbers might send USD further down towards new historic lows.

AUD/JPY – 81.60

AUD is gaining strength against JPY despite the latter’s upward trend in the world. Although, Japanese government is trying to trigger JPY’s weakening because high JPY quotes cause damages to the country’s manufacturing sector. The AUD/JPY pair stands at JPY 81.60, while in the long run AUD has been on the sharp rise against JPY since mid-August climbing from the 73.00 line. AUD is gaining strength after a few days of stable trading. If nothing changes and if Japanese Government continues with its attempts to weaken JPY, AUD might cross the 88.00 line, which is also next JPY resistance.