A surprise drop in Australia’s jobless rate is pushing the AUD higher. The gains, however, could be short-lived, as the quality of the jobs deteriorated in February. The bid tone around the Aussie dollar strengthened, pushing the AUD/USD to a three-week high of 0.7162 as the official data released soon before press time showed Australia’s jobless rate fell to a fresh seven-year low of 4.9 percent in February. The unemployment rate was expected to hold steady at 5 percent. The drop in the jobless rate, however, is accompanied by a decline in the labor force participation rate to 65.6 percent from the previous month’s print of 65.7 percent. Further, the economy added just 4.6k jobs in February compared to 39.1K additions in January, according to the Australian Bureau of Statistics. Notably, the actual figure missed the consensus estimate of 14K by a wide margin. Full-time jobs rose dropped 7.3K, having surged 65.4K in January, while part-time jobs rose 11.9K, having dropped 26.3K in the previous months. All-in-all, the data indicates that the labor market weakened in February. The probability of a 25 basis point rate cut by August, which was seen at 64 percent yesterday. After all, the RBA is banking on the labor market to cushion the impact of a slowdown in the property market. The AUD, therefore, may have a tough time holding on to gains seen at press time. That said, the pullback could find the support of the 5-day moving average (MA) of 0.7109, as the American dollar is on the defensive, courtesy of the dovish Fed. Technical Levels FX Street FX Street FXStreet is the leading independent portal dedicated to the Foreign Exchange (Forex) market. It was launched in 2000 and the portal has always been proud of their unyielding commitment to provide objective and unbiased information, to enable their users to take better and more confident decisions. View All Post By FX Street FXStreet News share Read Next AUD/JPY jumped 44 pips on surprise drop in Australia’s jobless rate FX Street 4 years A surprise drop in Australia's jobless rate is pushing the AUD higher. The gains, however, could be short-lived, as the quality of the jobs deteriorated in February. The bid tone around the Aussie dollar strengthened, pushing the AUD/USD to a three-week high of 0.7162 as the official data released soon before press time showed Australia's jobless rate fell to a fresh seven-year low of 4.9 percent in February. The unemployment rate was expected to hold steady at 5 percent. The drop in the jobless rate, however, is accompanied by a decline in the labor force participation rate… Regulated Forex Brokers All Brokers Sponsored Brokers Broker Benefits Min Deposit Score Visit Broker 1 $100T&Cs Apply 0% Commission and No stamp DutyRegulated by US,UK & International StockCopy Successfull Traders 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 2 T&Cs Apply 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 3 Recommended Broker $100T&Cs Apply No deposit or withdrawal feesTrade major forex pairs such as EUR/USD with leverage up to 30:1 and tight spreads of 0.9 pips Low $100 minimum deposit to open a trading account 9 Visit Site FreeBets ReviewsYour capital is at risk. 4 T&Cs Apply Visit Site FreeBets ReviewsYour capital is at risk. 5 Recommended Broker $0T&Cs Apply Trade gold, silver, and platinum directly against major currenciesUp to 1:500 leverage for forex trading24/5 customer service by phone and email 9 Visit Site FreeBets ReviewsYour capital is at risk.