April 25, 2024

AUD/USD Fall Backward in the Direction of 0.6950 as Australia Gets Mixed Employment Figures

Exact Unemployment Rate Report 

The AUD/USD currency pair has shed some profits in the area of 0.6960 as the jobs report from Australia came in with mixed data early on Thursday. Another factor that posed a challenge to the Aussie pair is the absence of relevant data from other places apart from the softer tone around the US Dollar.

Having said that, the news from Australia’s unemployment rates was in tandem with the 3.9% that was forecasted for it while it refreshed the all-time low point. However, the fall of the employment change to the area of 4,000 against the market expectation of 30,000 and an initial figure of 17,900 seems to have put so much weight on the AUD/USD pair’s prices.

AUD/USD price chart. Source TradingView

It should be noted that the Australian wage price index that came in softer than was anticipated for quarter one of this year put the focus on hawks of the Reserve Bank of Australia the day before. All their earlier positions came under close scrutiny.

Doubtful Statistics in Australia

Since there is a softer wage price index and employment change on the ground, the Reserve Bank of Australia’s 40 basis points interest rate increase is currently questionable. It also, now, calls into question the latest corrective pullback the AUD/USD pair has gone through. The recent decision of Shanghai not to completely lift its lockdown combined with new restrictions in the port city of Tianjin close to Beijing shows the woe attendant to COVID.

In addition, fears of inflation in Europe joined forces with geopolitical concerns around Russia to aggravate the poor market sentiments. It goes ahead to apply more pressure downward on the AUD/USD currency pair.

The absence of significant events and constant statements from policymakers of the Federal Reserve seems to have halted the waves of risk-aversion. That said, the ten-year Treasury bond yield of the United States shed 11 basis points to some 2.88% on Wednesday. It was largely unmoved at close to 2.89% as of press time in the course of the Asian session on Thursday.

Meanwhile, the S&P 500 futures fell by 0.50% at the very minimum. The US Dollar index equally lost 0.14% close to 103.77 as of press time on Thursday.

After seeing the initial response to the Australian jobs data which was in tandem with the expectations of the market, sellers of the AUD/USD currency pair might likely make a return. This is due to the quarter one wage price index and the attendant risk-off market mood that followed it.

This laid emphasis on Thursday’s risk catalysts and the second-tier reports in the United States that relate to manufacturing and housing to predict the pair’s move. 

Sellers of the AUD/USD currency pair attack a near-term significant support level close to 0.6960 while traders jostle to shed the largest daily loss of a week.

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