- AUD is better bid on upbeat Aussie labor market report.
- Headline figure missed estimates, but full-time jobs ticked higher.
The bid tone around the Australian Dollar strengthened, pushing the AUD/USD to a session high of 0.7027 after the data released by the Australian Bureau of Statistics showed the fulltime jobs growth picked up pace in June.
The economy added 21.1K fulltime jobs last month, a significant rise from the preceding month’s print of 2.4K additions. Meanwhile, part-time jobs fell by 20.6K, following a 39.8K rise in May. Further, the jobless rate remained unchanged at 5.2% as expected.
A rise in the fulltime jobs is helping the AUD digest the weaker-than-expected headline figure. The employment change came in at 0.5K, missing the estimate of 10.0K by a big margin and down significantly from May’s print of 42.3K.
All-in-all. the labor data will ease pressure on the Reserve Bank of Australia to cut rates immediately in August. The central bank cut rates in May and June and is widely expected to deliver another rate cut in the final quarter of this year.
With full time jobs rising, the markets are unlikely to pull forward expectations of a third rate cut to next month. The AUD/USD, therefore, could extend the gains during the day ahead. As of writing, the pair is trading at 0.7020, representing a 0.16% rise on the day.
A daily close above the July 16 high of 0.7045 is needed to revive the bullish technical setup.
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