The headlines from Australia’s job report for May were positive: Australian gained 1.1K jobs, better than a drop of 9.8K that was expected. Also the unemployment rate exceeded expectations and stood on 5.5% instead of 5.6% expected.
However, revisions to previous figures and the details of the report aren’t convincing. AUD/USD recovered from the falls seen beforehand, but cannot tackle the highs seen beforehand.
Data for April was revised to the downside: employment rose only 45K instead of 50.1K and the unemployment rate stood on 5.6% instead of 5.5% originally reported.
And like in the US, the drop in unemployment was accompanied with a drop in the participation rate to 65.2%. The employment to population ratio slipped from 61.7% to 61.6%.
And when looking at the type of jobs, there is more growth in part time jobs, 2.4% (annually) and less in full time: +0.5%.
AUD/USD is currently trading at 0.9485, around the levels it closed the previous week.We still have a hammer pattern on the weekly chart.
0.9527 works as resistance and 0.9425 as support. For more, see the AUD to USD forecast.
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