- Upbeat Aussie labor data has put a strong bid under the AUD.
- The jobless rate unexpectedly dropped in September.
- Uptick in full-time jobs will likely ease the pressure to deliver an end-of-the-year rate cut.
The bid tone around the AUD strengthened, pushing the AUD/USD pair higher from 0.6759 to 0.6783 after the Australian data showed a surprise drop in the jobless rate in September.
The Unemployment rate fell to 5.2% from August’s 5.3% and the Participation Rate came in at 66.1% versus 66.2% in August. Employment in Australia rose by 14.7K in September, following August’s 34.7K rise, which was mainly driven by the rise in part-time jobs.
The job growth in September was primarily driven by the Fulltime Employment, which increased by 26.2, following August’s -15.5K reading. Meanwhile, Part-Time jobs fell by 11.4K.
The labor data was expected to show the economy added 15,000 new jobs for the month of September, while the unemployment rate and participation rate remained unchanged at 5.3% and 66.2%, respectively.
The upbeat data will likely ease pressure on the Reserve Bank of Australia to cut rates before the year-end. As of now, the odds of an end-of-the-year rate cut stand above 70%.
That probability will likely drop, keeping the AUD better bid during the day ahead. It is worth noting that the central bank delivered successive cuts in June and July and reduced rates to a record low of 0.75% on Oct. 1.
Technical levels
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