AUD/USD: Australia’s unemployment rate surprisingly declined to a 4-month low level in April


AUDUSD Movement

For the 24 hours to 23:00 GMT, the AUD rose 0.07% against the USD and closed at 0.7433.

LME Copper prices declined 0.2% or $9.0/MT to $5575.0/MT. Aluminium prices rose 0.7% or $13.0/MT to $1928.0/MT.

In the Asian session, at GMT0300, the pair is trading at 0.7453, with the AUD trading 0.27% higher against the USD from yesterday’s close, following upbeat Australian jobs report.

Data revealed that Australia’s seasonally adjusted unemployment rate registered an unexpected drop to 5.7% in April, dipping to a four-month low level, suggesting that the nation’s labour market is strengthening, despite a slowdown in economic growth. Meanwhile, investors had envisaged the unemployment rate to remain steady at 5.9%. Additionally, the nation’s consumer inflation expectations dropped to 4.0% in May, compared to a level of 4.1% in the previous month.

Elsewhere, in China, Australia’s largest trading partner, the house price index climbed 10.7% on an annual basis in April, after recording a rise of 11.3% in the previous month.

The pair is expected to find support at 0.7406, and a fall through could take it to the next support level of 0.7359. The pair is expected to find its first resistance at 0.7479, and a rise through could take it to the next resistance level of 0.7505.

The currency pair is trading above its 20 Hr and 50 Hr moving averages.

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