AUD USD - FUNDAMENTAL ANALYSIS
Australia: Jobs, wage data and RBA minutes on tap
Australia’s labor market data is out on Thursday and expected to show the addition of 25k jobs in April after 53k jobs added in March, with the unemployment and participation rates seen steady at 3.5% and 66.7% respectively. Just a day ahead of this release, we also get the Q1 wage price index which could be a key focus as RBA Governor Lowe emphasised the importance of the “evolution of labor costs” to justify the recent increase in the cash rate. A big upside surprise in wage and labor data could continue to suggest a tight job market in Australia, and bring back “sticky” inflation concerns which could be a tricky situation for the RBA and potentially mean more downside for the AUDUSD which has broken below the 50DMA. RBA minutes from the May meeting are also out on Tuesday.
Australia’s labor market data is out on Thursday and expected to show the addition of 25k jobs in April after 53k jobs added in March, with the unemployment and participation rates seen steady at 3.5% and 66.7% respectively. Just a day ahead of this release, we also get the Q1 wage price index which could be a key focus as RBA Governor Lowe emphasised the importance of the “evolution of labor costs” to justify the recent increase in the cash rate. A big upside surprise in wage and labor data could continue to suggest a tight job market in Australia, and bring back “sticky” inflation concerns which could be a tricky situation for the RBA and potentially mean more downside for the AUDUSD which has broken below the 50DMA. RBA minutes from the May meeting are also out on Tuesday.