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  • Mixed labour market data from Australia weighs on AUD.
  • US Dollar Index closes in on 100 handle.
  • Coming up: Philly Fed Manufacturing Index from US and Commonwealth PMI report from Australia.

The AUD/USD pair, which came under bearish pressure earlier in the week on the RBA’s dovish meeting minutes, continued to push lower on Thursday amid a combination of mixed labour market data from Australia and broad USD strength. As of writing, the pair was trading at its lowest level since March 2019 at 0.6625, erasing 0.75% on a daily basis.

Unemployment Rate in Australia rises

The data published by the Australian Bureau of Statistics on Thursday revealed that the Unemployment Rate in January rose to 5.3% from 5.1%. On a positive note, Fulltime Employment in the same period increased 46.2K after declining 1.8K  in December. According to Reuters, following the labour market data, Commonwealth Bank of Australia now sees the RBA cutting its policy rate from 0.75% to 0.50% in April.

In the early trading hours of the Asian session, the Commonwealth Bank’s Manufacturing and Services PMI will be looked upon for fresh impetus.

On the other hand, the dismal performance of major European currencies and the JPY since the start of the week allows the greenback to continue to gather strength. Ahead of the weekly Jobless Claims and the Philly Fed’s Manufacturing Survey, the US Dollar Index is up 0.27% on the day at 99.87.

Technical levels to watch for

 

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