- AUD/USD hit a 4.5-month low following the Aussie jobs data release.
- The Aussie unemployment rate ticked higher to 5.2%, while full-time jobs dropped in April.
- The labor data released today may boost expectations of an RBA rate cut in June.
The AUD/USD pair slipped to 0.6893 – the lowest level since Jan. 3 – on the back of a bigger-than-expected jump in Australia's unemployment rate.
The official data released soon before press time showed the jobless rate ticked higher to 5.2% in April, beating the expected print of 5.1%. The previous month's print was also revised higher to 5.1% from 5.0%. Further, the economy added 28.4K jobs in April, beating the estimate of 14.0K by a big margin.
The big beat on the headline figure isn't helping the AUD as the Full-Time Employment dipped by 6.3K, following a 48.3K rise in March.
With the full-time jobs and unemployment rate disappointing expectations, the probability that the RBA would cut rates by 25 basis points in June may rise above 50% from the current 37%. As a result, the AUD/USD could slip further during the day.
Supporting that bearish view is Australia's 10-year government bond yield, which is currently trading at a record low of 1.64%, down four basis points on the back of dismal labor market data.
As of writing, the currency pair is trading at 0.6907, representing a 0.25% drop in the day.
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. 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.
Recommended content
Editors’ Picks
GBP/USD stays weak near 1.2400 after UK Retail Sales data
GBP/USD stays vulnerable near 1.2400 early Friday, sitting at five-month troughs. The UK Retail Sales data came in mixed and added to the weakness in the pair. Risk-aversion on the Middle East escalation keeps the pair on the back foot.
EUR/USD holds steady near 1.0650 amid risk reset
EUR/USD is holding onto its recovery mode near 1.0650 in European trading on Friday. A recovery in risk sentiment is helping the pair, as the safe-haven US Dollar pares gains. Earlier today, reports of an Israeli strike inside Iran spooked markets.
Gold: Middle East war fears spark fresh XAU/USD rally, will it sustain?
Gold price is trading close to $2,400 early Friday, reversing from a fresh five-day high reached at $2,418 earlier in the Asian session. Despite the pullback, Gold price remains on track to book the fifth weekly gain in a row.
Bitcoin Price Outlook: All eyes on BTC as CNN calls halving the ‘World Cup for Bitcoin’
Bitcoin price remains the focus of traders and investors ahead of the halving, which is an important event expected to kick off the next bull market. Amid conflicting forecasts from analysts, an international media site has lauded the halving and what it means for the industry.
Israel vs. Iran: Fear of escalation grips risk markets
Recent reports of an Israeli aerial bombardment targeting a key nuclear facility in central Isfahan have sparked a significant shift out of risk assets and into safe-haven investments.