FxWirePro: AUD/USD drops to three-week low after labour shock

• AUD/USD fell to hit three week low on Thursday after Australia’s employment data missed expectations and the jobless rate climbed to a three-year high.

• Data from the Australian Bureau of Statistics released Thursday showed net employment rose by just 2,000 in June, following a revised 1,100 decline in May. The result fell well short of market expectations for a 20,000 increase.

• Australia’s jobless rate surged to 4.3% from 4.1%, its highest since November 2021—catching markets off guard after months of steady readings.  

• The weak labor market data added to signs of a slowing economy, strengthening expectations for monetary policy easing.

• Following the soft labor print, markets are now pricing in a 90% probability of a rate cut in August.

• At GMT 04:43, Australian dollar was trading down 0.14% at 0.6522 against US dollar .

•  Immediate resistance is located at 0.6543(Daily high), any close above will push the pair towards 0.6592(23.65fib%fib)

•  Support is seen at 0.6471(50%fib) and break below could take the pair towards 0.6427(Lower BB).

 Recommendation: Good to sell around 0.6490 with stop loss of 0.6550 and target price of 0.6430