Australia’s full-time employment dropped sharply by 56,500 in November, down from a gain of 55,300 the month before. This decline puts more pressure on the Australian economy, with mixed employment data affecting currency values and market feelings. In the currency markets, AUD/JPY fell close to 103.50, showing how traders reacted to Australia’s employment news. Other currency pairs, like GBP/USD, slipped to about 1.3365, while USD/INR increased due to trade uncertainties.

Precious Metals Market

In the precious metals market, gold prices dropped from their weekly highs because the US Dollar rebounded slightly. Investors are keeping an eye on the Federal Reserve’s recent rate cut, which indicates only small adjustments ahead, projecting a 3.4% interest rate by the end of 2026. In the cryptocurrency sector, Solana prices have dropped below $130, influenced by general market trends. However, Hyperliquid is performing well despite a decrease in the overall staking balance in the crypto market. This information is for informational purposes only and comes with risks and uncertainties. It’s essential to do thorough research before making any investment decisions, as markets can be volatile. The large fall in Australian full-time employment is a serious warning sign for the economy. This isn’t just a minor change; it’s a sharp reversal from the previous month’s gains, indicating a quick slowdown in the job market. We believe this suggests further weakness for the Australian dollar (AUD) during the holiday season. This weak jobs report is worsened by new data showing Australian consumer confidence dropped to a 12-month low in November 2025, with retail sales also declining. The market now believes there’s over a 60% chance the Reserve Bank of Australia will cut rates in its first meeting in February 2026. Traders might consider buying AUD put options or shorting AUD/JPY futures, as the yen could gain from any risk-averse sentiment.

Federal Reserve Policy Impact

In the United States, the Federal Reserve has sent mixed signals by cutting rates while suggesting fewer cuts in the future and increasing GDP forecasts. This “hawkish cut” adds uncertainty, likely increasing volatility in the US dollar. This environment is good for strategies that benefit from price swings, like long straddles on the EUR/USD pair. We saw similar turbulence in the market after the Fed’s policy changes in late 2023, where initial reactions quickly reversed as investors digested the guidance. Expect the US dollar to be unpredictable as we head into the new year. Using options to manage risk is a smart tactic until a clearer trend appears. With the Bank of England likely to cut rates next week, the British pound (GBP) faces challenges. A dovish BoE could push the GBP/USD pair lower, especially if the US dollar finds support from the Fed’s optimistic long-term outlook. We might explore bearish positions on the pound, like selling GBP futures before the BoE announcement. Gold’s price near $4,250 an ounce shows that anxiety remains high, despite its recent pullback. The precious metal is caught between a dovish present (the rate cut) and a potentially hawkish future from the Fed. Traders in derivatives could take advantage by selling option strangles on gold, betting that it will remain within a certain range as these conflicting forces balance out in the coming weeks. Create your live VT Markets account and start trading now.

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