When will the Australian employment report be released, and how could it affect AUD/USD?

The ABS will publish the  April employment report early on Thursday. As previously stated, Australia is expected to have created 23.7K new jobs in the month, while the Unemployment Rate is foreseen at 3.9%. The Participation Rate was reported at 66.6% previously.

With that in mind, a solid employment report will likely cool further hopes for a soon-to-come rate cut and provide near-term support to the AUD. An extremely poor outcome could spell trouble for the Aussie, although the broad US Dollar’s weakness will likely prevail after the dust settles. Furthermore, it would take more than one dismal report to consider the labor market is loosening, which means it would hardly impact RBA’s future monetary policy decisions. 

From a technical perspective, Valeria Bednarik, Chief Analyst at FXStreet, notes: “The AUD/USD pair surged to fresh four-month highs following the release of the United States (US) Consumer Price Index (CPI) and trades in the 0.6660 region ahead of the event. The pair struggles to extend its upward momentum as selling interest has rejected advances around the current price zone since early March. Persistent buying interest could push AUD/USD towards 0.6700, while beyond the latter, resistance could be found at 0.6730 and 0.6770. A dismal report, on the contrary, may temporarily weigh on the Aussie. Near-term support comes at 0.6600, followed by the 0.6550-0.6560 price zone. Bear in mind, bulls will likely take their chances on intraday slides.” 

Bednarik adds: “AUD/USD gains are directly linked to persistent US Dollar’s weakness, amid diminished hopes the Federal Reserve (Fed) will trim interest rates in the upcoming months. With that in mind, the pair is set to resume its pre-release trend once speculative interest digests the employment figures