AUDUSD has dropped to 0.6630 on Aussie employment statistics

AUDUSD has dropped sharply to around 0.6630 after Australian unemployment rose to 3.7%.

After the Australian Bureau of Statistics released Employment (April) data, the AUDUSD has dropped sharply to around 0.6630. The Australian labor market experienced a 4.3K decrease in payrolls in April, whereas the street was predicting a 25K increase. The unemployment rate has risen substantially to 3.7%, above the consensus and previous announcement of 3.5%.

The Australian Bureau of Statistics released Q1 Wage Price Index statistics on Wednesday. The quarterly labor cost index stayed stable at 0.8%, but was lower than the 0.9% expected. Annual growth rose to 3.7%, compared to the consensus of 3.6% and the previous announcement of 3.3%.

Because the Australian labor market is heating up, the Reserve Bank of Australia (RBA) may consider raising interest rates. In June, the Fed will take a break from raising interest rates.

Meanwhile, following a strongly positive Wednesday settlement, S&P500 futures have experienced some pullback in early Asia. The overall market sentiment is upbeat, as the agreement to raise the US debt ceiling by the weekend appears positive. US President Joe Biden and other Democratic leaders have acknowledged that raising the US borrowing ceiling and spending plans would be disastrous. As a result, the default suggestion is off the table.

Investors anticipate that the Fed will maintain its current interest rate policy at its June monetary policy meeting.

The US Dollar Index (DXY) has experienced selling pressure at 102.90 following a less-confident drop, as investors anticipate the Federal Reserve (Fed) maintaining its interest rate policy in its June monetary policy meeting.

AUDUSD Technical levels