Aussie dollar pops higher on unemployment drop, Atlassian closes first day up 32%, ASX futures down 11 points

It's surprising to see ASX futures down a little this morning, after a rise in US shares and much better-than-expected employment figures released yesterday. Strong jobs growth in NSW signalled optimism in non-mining areas of Australia's economy and the combined positive employment change over the months of October (+25,300) and November (+71,400) should give rise to a bit of celebration, irrespective of what the cynics might say about the reliability of the data. If nothing else, an economy labelled with a 5.8% unemployment rate--after rising as high as 6.4% at the beginning of the year--will be good for sentiment, although the volatility of the unemployment rate this year is unusually high. But after experiencing unemployment that trended higher from lows around 5% in 2011 to the peak of 6.4% January this year, we have now seen a meaningful pause in that trend irrespective of the accuracy of month-to-month figures - it's encouraging.

We can expect upward pressure on the 30-day interbank cash rate futures for February (the first month back for the RBA), given that a stronger labour force will be a positive for the RBA to use in potentially dismissing a rate cut next year. FX traders caught onto this and bought the AUDUSD pair (first chart) up from US$0.7230 to highs of US$0.7330 after the announcement, and it's presently sitting 50 pips below that high. 

The local founders of tech collaboration software maker Atlassian couldn't wipe the smiles from their faces after the listing of their firm on the NASDAQ last night, and who can blame them. Atlassian is now available to trade on Rivkin Trader under the code TEAM - email customerservice@rivkin.com.au to open an account now. The stock's IPO was priced at US$21, and it closed up 32.29% at US$27.78 and is trading at US$28 in after hours trade. The company now has a market cap of US$5.8 billion and, unlike many newcomers to the tech IPO market, has a long and strong track record of positive earnings - so after years of private valuations and guesswork, Australia now officially has a couple of new tech billionaires to help champion PM Turnbull's innovation push. The founders insist that valuations should not be the focus, but realistically their share price is the key performance metric when it comes to growing the Atlassian brand through its recognition now as a multi-billion dollar listed tech firm. So a big congratulations to Mike Cannon-Brookes and Scott Farquhar for a job well done!


Source: Rivkin, Saxo Bank

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This article was written by Scott Schuberg, CEO of Rivkin Securities Pty Ltd. Enquiries can be made via info@rivkin.com.au or by phoning +612 8302 3600.

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