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Strong Labour Market Report Supports Aussie

AUD

The Aussie dollar pops higher after the release of a local labour force report, which showed that the unemployment rate dipped to 3.5%, the lowest level since August 1974 when the survey was quarterly.

  • The addition of 88.4k jobs (52.9k full-time plus 35.5k part-time positions) generated a deeper than expected fall in the unemployment rate, with the participation rate posting an unexpected 0.1pp uptick. Economists expected employment growth to print at +30.0k, according to a Bloomberg survey.
  • AUD/USD bounced off session lows but still sits below neutral levels, last at $0.6748. Familiar technical picture remains in play. The greenback continues to sit atop the G10 scoreboard, but the Aussie has now become the runner-up.
  • AUD/NZD trades +24 pips at NZ$1.1048, holding yesterday's range so far. Next resistance is at NZ$1.1104, which capped gains on Jul 11. Bears look for a dip through Jun 24 low of NZ$1.0953.

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