Strong Australia Employment Report to Fuel Larger AUD/USD Rebound

Trading the News: Australia Employment Change

Australia’s Employment report may curb the recent pullback in AUD/USD as the economy is anticipated to add another 15.0K jobs in September.

Image of DailyFX economic calendar

Signs of a more robust labor market may heighten the appeal of the Australian dollar as it instills an improved outlook for growth and inflation, and another positive development may put pressure on the Reserve Bank of Australia (RBA) to lift the official cash rate (OCR) off of the record-low as ‘the unemployment rate is trending lower and, at 5.3 per cent, is the lowest in almost six years.

In turn, the RBA may adopt a more hawkish tone at the next meeting on November 6, but a batch of lackluster data prints may spark a bearish reaction in the Australian dollar as it encourages Governor Philip Lowe Co. to retain the wait-and-see approach throughout the remainder of the year. Sign up and join DailyFX Currency Analyst David Song LIVE for an opportunity to discuss potential trade setups!

Impact that Australia Employment report has had on AUD/USD during the last print

August 2018 Australia Employment Change

AUD/USD 5-Minute Chart

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