AUDUSD Off Post Labour Data Lows As Equities Rally

AUDUSD was already off its intraday high of 0.6714 before labour market data showing a 0.2pp increase in the unemployment rate. The pair then fell to 0.6677 but has now turned and is little changed on the session to 0.6695 supported by stronger regional equities. The USD index is down 0.2%.

• April employment printed higher than expected at 38.5k after an upwardly-revised 5.9k drop. The details were a bit weaker with the unemployment rate rising to 4.1% from 3.9% and new jobs concentrated in part-time but the data remain volatile (see MNI Economy Struggles To Make Enough Jobs For Increased Labour Force).
• AUDJPY is down 0.6% to 103.04 as USDJPY has fallen to around 154. AUDNZD is 0.1% lower at 1.0924 after a low of 1.0915. AUDEUR is down slightly to 0.6149 and AUDGBP to 0.5275.
• Equities are rallying with the ASX up 1.6% and the Hang Seng 1.1%. The S&P e-mini is 0.2% higher. Oil prices are higher again with WTI up 0.5% to $79.04/bbl. Copper is up 1% and iron ore around $115/t.
• Later the Fed’s Barr, Barkin, Harker, Mester, Bostic and BoE’s Greene speak. There are also US jobless claims, April housing, IP, trade prices and May Philly Fed index.