AUD/USD Exchange Rate Softened by Employment Figures
The Australian Dollar to US Dollar (AUD/USD) exchange rate is trending lower this morning as Australia’s latest employment figures have failed to impress.
At the time of writing the AUD/USD exchange rate has fallen around 0.3% so far, leaving the pairing trading at around $0.6909.
Australian Dollar (AUD) Exchange Rates Slide as Jobs Data Fails to Spark Confidence
The Australian Dollar (AUD) finds itself on the defensive against the US Dollar (USD) this morning, after Australia’s latest jobs report appeared to disappoint investors.
According to data published by the Australian Bureau of Statistics (ABS), the Australian workforce grew by 42,300 in May, slightly down from the 43,100 reported in April but well above the 17,500 that had been forecast by economists.
However almost all of these new jobs were in part-time positions, with analysts suggesting a number of them would also likely have been temporary election workers.
Aust jobs growth still solid in May but was likely boosted by temp election workers, full time emp has been soft for the last two months now, hrs worked down for two months in a row and unemployment trending up..#ausecon pic.twitter.com/yyFfCwH18g
— Shane Oliver (@ShaneOliverAMP) June 13, 2019
On top of this, domestic unemployment held at 5.2%, missing expectations it would slide to 5.1% and leaving it at its worst level since August 2018.
This has left the Australian Dollar continuing its downward trajectory as analysts speculate that the ongoing weakness in the labour market will make another rate cut from the Reserve Bank of Australia (RBA) this year almost inevitable.
US Dollar (USD) Exchange Rates Bolstered by Safe Haven Demand
At the same time, the US Dollar (USD) has found support this morning thanks to rising safe-haven demand.
Investors appear cautious this morning as a result of ongoing US-China trade tensions, with hopes fading that the two sides will be able to work out their differences at the G20 summit later this month.
On top of this reports of attacks on two oil tankers in the Gulf of Oman, and the huge street protests in Hong Kong, are also contributing to rising geopolitical tensions, further increasing the demand for the safe haven US Dollar.
AUD/USD Exchange Rate Forecast: Rebound in US Retail Sales to Boost the US Dollar?
Looking ahead to the tail end of this week’s session, the Australian Dollar to US Dollar (AUD/USD) exchange rate is likely continue to trend downwards, following the publication of the latest US retail sales figures.
USD exchange rates are likely to strengthen on Friday as economists forecast that sales growth will have rebounded from -0.2% to 0.6% in May.
Potentially lending further support to the US Dollar (USD) will be the accompanying industrial production figures, with US factory output also expected to have returned to growth last month.
In the meantime, the Australian Dollar (AUD) may attempt to mount a recovery later tonight, depending on the performance of China’s latest economic data, with an upswing in Chinese industrial production in May likely to reflect well on the ‘Aussie’ due to Australia’s close trade links with China.