AUD: Job market remains robust – Commerzbank

FXStreet Insights Team FXStreet

After losing 57,500 jobs in February, the Australian labour market rebounded slightly in March with 32,200 new jobs, Commerzbank's FX analyst Volkmar Baur notes.

Australian labour market remains very robust

"Looking at March alone, the Australian labour market remains very robust. At 4.1%, the unemployment rate remains very low and well below pre-pandemic levels. Underemployment and youth unemployment also remain low."

"However, it should also be noted that employment figures are very volatile on a monthly basis. Looking at the three-month moving average, only 2,100 jobs per month have been created on average over the past three months, suggesting a significant cooling in the labour market."

"At its last meeting, the RBA emphasised that the strong labour market continued to be seen as a risk to inflation. However, the April jobs report will be released before the next meeting on 20 May. The significance of today's figures for the currency market is therefore limited, which explains the AUD's muted reaction this morning."

Author

FXStreet Insights Team

FXStreet

The FXStreet Insights Team is a group of journalists that handpicks selected market observations published by renowned experts. The content includes notes by commercial as well as additional insights by internal and external analysts.

EUR/USD deflates to fresh lows, targets 1.1600

The selling pressure on EUR/USD now gathers extra pace, prompting the pair to hit fresh multi-week lows in the 1.1625-1.1620 band on Friday. The continuation of the downward bias comes in response to further gains in the US Dollar as market participants continue to assess the mixed release of US Nonfarm Payrolls in December.

GBP/USD breaks below 1.3400, challenges the 200-day SMA

GBP/USD remains under heavy fire and retreats for the fourth consecutive day on Friday. Indeed, Cable suffers the strong performance of the Greenback, intensified post-mixed NFP, and trades at shouting distance from its critical 200-day SMA near 1.3380.

Gold flirts with yearly tops around $4,500

Gold keeps its positive bias on Friday, adding to Thursday’s advance and challenging yearly highs in the $4,500 region per troy ounce. The risk-off sentiment favours the yellow metal despite the firmer tone in the Greenback and rising US Treasury yields.