Archived IMT (2009.03.12)

Aussie dropped across the board in Asian trade after the jobless rate jumped to a 4-year high of 5.2% in Feb from 4.8% and payrolls dropped by 53.8K, fuelling expectations that this months rate pause by the RBA was only temporary. The central bank is expected to resume easing with a 50-bp rate cut next month as unemployment continues to spread. Nonetheless, today's retreat is seen as an entry opportunity in a currency whose fundamentals outweigh all G10 players. Aussie remains in favor against USD, CHF and GBP, but caution ahead of US retail sales.