Breaking News
Get Actionable Insights with InvestingPro+: Start 7 Day FREE Trial Register here
Investing Pro 0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

Aussie Rebounds On Jobs Report

By MarketPulse (Kenny Fisher)ForexMay 19, 2022 05:57AM ET
www.investing.com/analysis/aussie-rebounds-on-jobs-report-200624560
Aussie Rebounds On Jobs Report
By MarketPulse (Kenny Fisher)   |  May 19, 2022 05:57AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 

Unemployment falls to record low

The Australian dollar rebounded on Thursday. AUD/USD was trading at 0.6980 in the European session, up 0.38% on the day.

Australia’s April employment report was a further confirmation that the labor market remained tight. The economy created 4,000 new jobs, which is a marginal gain.

However, there was an impressive gain in the number of full-time jobs (92.4 thousand), as part-time jobs declined (88.4 thousand). This move towards more full-time jobs should translate into stronger consumer spending. Even more importantly, the unemployment rate fell to a record low of 3.9%, down from 4.0%.

The employment data was solid but not spectacular, which means that the RBA will most likely deliver a modest 0.25% rate hike at the June meeting. Wage growth ticked higher to 2.4% in Q1, up from 2.3% prior.

At one time, RBA Governor Lowe insisted that he would not raise rates until wage growth hit 3%, but he was forced to abandon this position as inflation has continued to accelerate.

The Federal Reserve has adopted a front-load approach to tightening, which means higher rates earlier on in the tightening cycle. The RBA hasn’t given any signals that it will follow suit.

Still, the RBA minutes indicated that a supersize 40-bps rate hike was considered at the May meeting, although policy makers ended up delivering a 25-bps increase.

We’ll probably see another 25-bps hike in June, although a 40-bps move shouldn’t be completely discounted.

Australians will vote in a federal election on Saturday. Prime Minister Scott Morrison is in a tight race against Labor leader Anthony Albanese. Morrison can be expected to maintain fiscal and monetary policy, and if he wins, this could give the Australian dollar a slight boost.

A Labor government could raise taxes and spending, which would be bearish for the Australian dollar.

AUD/USD Daily Chart
AUD/USD Daily Chart

AUD/USD Technical

  • AUD/USD faces resistance at 0.7064 and 0.7189
  • There is support at 0.6946 and 0.6821

Original Post

Aussie Rebounds On Jobs Report
 

Related Articles

Kenny Fisher
Euro Slides As Inflation Jumps By Kenny Fisher - Jul 01, 2022

The EUR/USD is sharply lower on Friday and is currently trading just above the 1.04 line, down 0.76%. Eurozone inflation outperforms Eurozone CPI for June was higher than...

Aussie Rebounds On Jobs Report

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email