AUDUSD steady as jobless rate stabilises at record lows
After an impressive rebound over the past three months, Australian Labour Force data released early today has shown the pace of the recovery has slowed to a more sustainable pace in March.
Share this:
After an impressive rebound over the past three months, Australian Labour Force data released early today has shown the pace of the recovery has slowed to a more sustainable pace in March.
The Australian economy added 17.9k new jobs in March while the unemployment rate remained stable at 4%. Both were marginally weaker than expectations; however, the unemployment rate has remained at its lowest level since August 2008.
Reflecting the underlying strength of the labour market, the participation rate was unchanged at 66.4% and at its highest level on record. The underutilisation rate, which includes underemployment, fell to 10.3% from 10.6%, the lowest level since September 2008.
The continued recovery in the labour market now has the economy at full employment, and a lift in wages growth should follow to above 3% by the second half of 2022. In expectation of this, it should see the RBA begin to raise interest rates by 15bp after the Federal Election in June.
Following a very shallow dip from .7465 to .7445 post the data, the AUDUSD has returned to where it was trading pre the data, trading at .7465.
Technically, preliminary signs of basing in the AUDUSD have emerged after a second consecutive test and rebound from the .7400c support area overnight, suggesting the correction from last week’s post-RBA, .7661 high is nearing completion.
Should the AUDUSD now reclaim resistance at .7500c on a closing basis, it would indicate the uptrend has resumed in line with our medium-term bullish view of the AUDUSD outlined here.
Source Tradingview. The figures stated are as of April 14th 2022. Past performance is not a reliable indicator of future performance. This report does not contain and is not to be taken as containing any financial product advice or financial product recommendation
How to trade with City Index
You can trade with City Index by following these four easy steps:
- Open an account, or log in if you’re already a customer
• Open an account in the UK
• Open an account in Australia
• Open an account in Singapore
- Search for the company you want to trade in our award-winning platform
- Choose your position and size, and your stop and limit levels
- Place the trade
After an impressive rebound over the past three months, Australian Labour Force data released early today has shown the pace of the recovery has slowed to a more sustainable pace in March.
The Australian economy added 17.9k new jobs in March while the unemployment rate remained stable at 4%. Both were marginally weaker than expectations; however, the unemployment rate has remained at its lowest level since August 2008.
Reflecting the underlying strength of the labour market, the participation rate was unchanged at 66.4% and at its highest level on record. The underutilisation rate, which includes underemployment, fell to 10.3% from 10.6%, the lowest level since September 2008.
The continued recovery in the labour market now has the economy at full employment, and a lift in wages growth should follow to above 3% by the second half of 2022. In expectation of this, it should see the RBA begin to raise interest rates by 15bp after the Federal Election in June.
Following a very shallow dip from .7465 to .7445 post the data, the AUDUSD has returned to where it was trading pre the data, trading at .7465.
Technically, preliminary signs of basing in the AUDUSD have emerged after a second consecutive test and rebound from the .7400c support area overnight, suggesting the correction from last week’s post-RBA, .7661 high is nearing completion.
Should the AUDUSD now reclaim resistance at .7500c on a closing basis, it would indicate the uptrend has resumed in line with our medium-term bullish view of the AUDUSD outlined here.
Source Tradingview. The figures stated are as of April 14th 2022. Past performance is not a reliable indicator of future performance. This report does not contain and is not to be taken as containing any financial product advice or financial product recommendation
Related tags:
Latest market news
Open an account in minutes
Experience award-winning platforms with fast and secure execution, and enjoy tight spreads from 0.5 pts on FX and 0.3 pts on indices.
Economic calendar
Web Trader platform
Our sophisticated web-based platform is packed with features.
Related articles
Australian Dollar Forecast: AUD/USD Four-Week Slide Nears Critical Uptrend Support 9 29 2026
Aussie momentum has deteriorated sharply into quarter-end, with inflation, Core PCE and NFP on tap as AUD/USD closes in on a pivotal technical threshold.
Euro Forecast: EUR/USD Tumbles Towards Yearly Low as Daily RSI Goes Oversold
EUR/USD has been hit hard in the final month of the quarter as USD strength has shown up in a big way. With the pair set to challenge its yearly low as RSI has pushed into oversold territory, is there a chance for a pullback with some big headline risk hitting in the US over the next few days?
AUD/USD outlook: Aussie slips despite hawkish RBA ahead of key data
The AUD/USD was unable to benefit from the Reserve Bank of Australia’s 25-basis-point rate hike overnight. The RBA lifted the cash rate to 4.60%, in line with expectations. However, the Australian dollar weakened following the decision, with much of the Bank’s hawkish stance seemingly priced in ahead of the announcement. The US dollar has also remained largely supported following the recent turmoil in the bond markets.
This report is intended for general circulation only. It should not be construed as a recommendation, or an offer (or solicitation of an offer) to buy or sell any financial products. The information provided does not take into account your specific investment objectives, financial situation or particular needs. Before you act on any recommendation that may be contained in this report, independent advice ought to be sought from a financial adviser regarding the suitability of the investment product, taking into account your specific investment objectives, financial situation or particular needs.
StoneX Financial Pte. Ltd., may distribute reports produced by its respective foreign entities or affiliates within the StoneX group of companies or third parties pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the report is distributed to a person in Singapore who is not an accredited investor, expert investor or an institutional investor (as defined in the Securities Futures Act), StoneX Financial Pte. Ltd. accepts legal responsibility to such persons for the contents of the report only to the extent required by law. Singapore recipients should contact StoneX Financial Pte. Ltd. at 6826 9988 for matters arising from, or in connection with the report.
In the case of all other recipients of this report, to the extent permitted by applicable laws and regulations neither StoneX Financial Pte. Ltd. nor its associated companies will be responsible or liable for any loss or damage incurred arising out of, or in connection with, any use of the information contained in this report and all such liability is hereby expressly disclaimed. No representation or warranty is made, express or implied, that the content of this report is complete or accurate.
StoneX Financial Pte. Ltd. is not under any obligation to update this report.
Trading CFDs carries a high level of risk that may not be suitable for some investors. Consider your investment objectives, level of experience, financial resources, risk appetite and other relevant circumstances carefully. The possibility exists that you could lose some or all of your investments, including your initial deposits. If in doubt, please seek independent expert advice. Visit www.forex.com/en-sg/terms-and-policies for the complete Risk Disclosure Statement.