AUD-i-Bull Ride

October 8, 2009: 0830 GMT

Australia’s jobless rate fell for the first time in 5-months to 5.7%, a slight improvement of 0.1% over last month’s, beating consensus estimates of 6%. It is the biggest gain in 2 years as 40,600 people obtained employment beating forecasts which suggested a decline of 10,000. The AUD rallied to .9043 against the Greenback from .8930 just before the release and from 0.8565 lows of Friday, taking its weekly gains so far this week to 4.3%.

Australia’s GDP has outpaced nearly every other industrialized nation, with IMF pegging the GDP growth at 1.95% for 2010.

AUD is trading in the overbought zone in the hourly charts and is still in an uptrend with a resistance at 0.9100. The AUD appears to be in a strong bullish trend with the RBA already having raised interest rates last week to 3.25%; a major move considering most nations are cutting rates or keeping them constant.

Another interest rate hike could follow next month, building strong upward momentum for the AUD in the coming weeks.