- The Aussie jobless rate was reported at 6.2% which is lower than the expected 8.3%
- 594,300 job losses reported in April
- Impact of employment data not as pronounced as expected on the AUD
The AUD/USD exchange rate is off to weak bearish performance on Thursday morning following a lower than anticipated jobless rate at 6.2%, undercutting the 8.3% rate that analysts expected. Despite that, the employment data revealed that 594,300 jobs were lost in Australia in April, which was higher than the forecast at 575,000. Fortunately, the Aussie dollar managed to absorb most of the impact of the unfavorable employment data.
The recently released employment data had a significant impact on the AUD/USD’s performance on Thursday morning, which was weak bullish. Technical analysis indicates that the price might trade above 0.6481 if it turns bullish and below 0.6461 if it continues with the bullish momentum during the trading session. A bullish run will content with resistance at around 0.6501, 0.6516, and 0.6571 price points, and the bearish trend will gain support around the 0.6421, 0.6381, and 0.6351 price points.
The recently released employment data highlights the massive number of jobs lost due to the coronavirus economic impact. It looks like things are not expected to get better any time soon, especially with the lack of a cure to address COVID-19. The Reserve Bank of Australia recently revealed that it expects the rate of unemployment to reach 10% before the end of 2020.
So far, interest rates have dropped to record lows and will likely continue to drop as the RBA attempts to support the economy. Australia is one of the countries that have so far demonstrated a decent handle over the coronavirus situation. The country plans to ease some of the restrictive measures implemented earlier this year in an attempt to prevent the spread of the virus. This means that we might see an increase in economic activity, which may support the Aussie dollar’s recovery.