Meanwhile, the Australian dollar (AUD) is still falling against the US dollar (USD), staying weak under 0.6500. During its recent history, release of Australian employment data has had the power to move the AUDUSD currency pair significantly. When April’s job numbers came out, there was virtually no response. As of Thursday morning in the Asian session, AUD/USD holding onto losses just shy of 0.6500 shows where the market stands.
In May, Australia’s part-time employment decreased by 41,200 positions, a stark contrast to the previous month’s increase of 29,500. The downward trend should worry all those concerned about the future of the relatively secure Australian labor market. Yet, despite this hugely market-moving data release, the AUD/USD exchange rate remained surprisingly stable. The absence of movement might mean traders are looking elsewhere for drivers moving the currency pair.
The USD is struggling to capitalize on its recent spike to a new weekly high. Consequently, it’s exerting a massive weight on the Australian dollar. Market participants seem to be erring on the side of caution, considering the guidance offered by the FOMC on likely future interest rate increases.
The convergence of a weakening AUD and a reticent USD produces a complicated environment for financial traders. Analysts are emphasizing the importance of the resiliency of today’s labor market and the US leverage of monetary policy. These factors are poised to determine the direction that AUD/USD will take in the days ahead.
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