The AUDUSD pair grew again yesterday to test the bearish channel’s resistance line, starting to rebound bearishly by today’s open, to head towards forming new bearish wave on the intraday basis, on its way to achieve negative targets that start at 0.6930 and extend to 0.6825.
The Aussie is receiving additional support from a down tick in Australian unemployment to its lowest level in nearly 50 years. The Kiwi is mostly responding to the slight turnaround in sentiment.
Figures from the Australian Bureau of Statistics (ABS) on Thursday showed Australia’s unemployment rate stood at its lowest level in almost 50 years in April as companies took on more full-time workers. This tightening in the labor market will increase pressure on the Reserve Bank of Australia (RBA) to raise interest rates.
The Australian jobless rate held at 3.9% in April, from a downwards 3.9% in March, matching market forecasts.
Employment missed the forecast with a increase of just 4,000, though that reflected a large 92,400 gain in full-time jobs being offset by an 88,400 drop in part-time work.
The tightening of the Australian job market strongly suggests the RBA will lift interest rates again in June as it scrambles to contain a flare up of inflation to a 20-year high. Trader odds point toward a move to 0.60% at the June policy meeting.
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