Following a very disappointing July jobs reading, the market was expecting a bit of a recovery this time around. However, the scale and magnitude of the recovery caught many by surprise.
Australia added a whopping 121,000 jobs in August and the unemployment rate dropped to 6.1%. Many analysts have questioned the credibility of the data, with economists suggesting assessing the data over a three to six month period would probably be a better way of looking at it.
Regardless, the immediate reaction was a spike in AUD/USD trading back above $0.9200 only temporarily though. The fact that the data is being questioned has capped the gains in the AUD and given how strong the data was, we should have seen a significant rally.
Having said that, this move has probably presented traders a fresh opportunity to sell. I feel AUD/USD could be looking to establish a new trading range between $0.9000 and $0.9200 as the domestic economy goes through a soft patch and the US economy ramps up.