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

    1. R3 0.6993
    2. R2 0.6979
    3. R1 0.6953
  1. PP 0.6939
    1. S1 0.6913
    2. S2 0.6899
    3. S3 0.6873

 

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. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Feed news

GME stock positioned for another short squeeze

Get the full analysis and chart in our Insights. Upgrade to Premium today    

Latest Forex News


Latest Forex News

Editors’ Picks

EUR/USD: Recovery from 50-DMA has bumpy road ahead

EUR/USD attacks upper end of immediate trading range following Monday’s corrective bounce. Previous resistance line, bearish MACD signals test the recovery moves. Three-week-old resistance line adds to the upside filters.

EUR/USD News

GBP/USD looks to UK jobs, Brexit to defend 1.4100

GBP/USD remains sidelined above 1.4100, recently taking offers around the intraday low of 1.4105 by the press time of the early Asian session on Tuesday. The cable dropped to the lowest since mid-May before bouncing off 1.4070 the previous day.

GBP/USD News

GBP/USD looks to UK jobs, Brexit to defend 1.4100

GBP/USD remains sidelined above 1.4100, recently taking offers around the intraday low of 1.4105 by the press time of the early Asian session on Tuesday. The cable dropped to the lowest since mid-May before bouncing off 1.4070 the previous day.

GBP/USD News

Elon Musk energizes BTC bullish thesis, with ETH and XRP range-bound

BTC streaks towards imposing resistance between $41,581/$44,622. ETH rebounds from symmetrical triangle's lower trend line. XRP has notably decoupled from BTC, no meaningful direction since the June 8 low.

Read more

US Dollar Index: Awaiting FOMC economic estimates

The Dollar’s initial weaker reaction to Thursday’s May inflation report, (it continued to rise to 5% annually from the 4.2% seen in April and the CORE reading at 3.8% was close to a 30-year high), which sent the USDIndex to test the week’s low zone at 89.90, was short – lived

Read more

Forex MAJORS

Cryptocurrencies

Signatures