Currency Analyst since 2010

AUD/USD shook off labor data

AUD/USD dipped to the levels in the $0.9350 area before returning to the levels above $0.9400.

The initial decline happened as the number of jobs in Australia contracted in May by 5K. However, the details of the employment report showed that everything is not as bad as it seemed at first. Australia added 22K full time positions, so all job losses were in the part time sector. The unemployment rate remained at 5.8%. All in all, the labor market data are neutral for the Reserve Bank of Australia. The RBA is expected to remain on hold for a long time.

According to Commerzbank, as long as the RBA does not intervene verbally AUD/USD will keep moving up towards $0.9500.


Chart. Daily AUD/USD

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