AUD/USD hits two-week low after Australian jobs data
|- AUD/USD drops to lowest since May 31 on Australian jobs data.
- Australia's jobless rate remained steady at 5.2% in May.
- Aussie jobs growth bettered estimates, but the surge was largely fueled by part-time jobs.
- Markets may pull forward expectations of an RBA rate cut to July.
AUD/USD slipped to 0.6914, the lowest level since May 31, after the official data released at 01:30 GMT showed Australia's jobless rate remained steady at 5.2% in May.
The markets were expecting the unemployment rate to drop to 5.1%. Further, the data showed the economy added 42.3K jobs in May, beating both the forecasted job growth of 17.5K and April's print of 28.4K by a big margin.
The big beat on the employment change, however, failed to put a bid under the AUD, possibly because the full-time jobs increased by a meager 2.4K, meaning the massive job addition in May was largely fueled by part-time jobs.
Overall, the jobs report is pointing to labor market weakness. As a result, the markets may pull forward expectations of an RBA rate cut to July, keeping the AUD under pressure in the short-term.
As of writing, the AUD/USD pair is trading at 0.6917, representing a 0.17% drop on the day. The currency pair closed at 0.6928 on Wednesday, violating the ascending trendline connecting May 23 and May 31 lows. So, the path of least resistance is to the downside.
Pivot levels
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.