Australian Dollar Rallies Amid Risk On Session

The Australian dollar rallies 2.5% on the day to hit session highs at 0.6470. Risk appetite and the US employment report have boosted the AUD.

The Australian dollar is going through an extraordinary recovery on Friday, rallying about 2.5% on the day amid a favorable market sentiment, to regain most of the previous six days’ losses. The pair bounced up at 0.6280 area earlier on Friday to reach highs at 0.6475 during the midday US trading session, before consolidating above 0.6425.

US employment figures have shown mixed readings in October, which has increased the weakness of an already vulnerable US dollar as risk appetite returned to the markets. European equity markets have closed with gains beyond 2%while the main US stock indexes are mixed in the afternoon trading after a strongly positive opening.

Non-Far private employment increased by 261K in October, beating expectations of 200K, while September’s figures were revised to 315K, up from the previously estimated 264K.

Investors’ enthusiasm about the strong employment data has been offset by the higher-than-expected unemployment rate, which rose to 3.7% from 3.5% in September, beating the consensus of a 3,6% reading, and the slowdown on hourly wages, 4,7% in October from 5% in September.