AUD: Payback weakness in Australian employment report – MUFG

By FXStreet Lee Hardman, Currency Analyst at MUFG, notes that the Australian dollar has been one of the worst performing currencies in the Asian trading session undermined by the release of the weaker than expected Australian employment report.

Key Quotes

“The report revealed that the Australian economy shed -7.9k jobs in January resulting in the unemployment rate increasing by 0.2 percentage point to 6.00%. Sample rotation effects in the report have contributed to volatility in Australian employment since late last year.

The surge in employment growth reported in October and November was likely exaggerated and payback weakness is now beginning to emerge. Amidst the uncertainty the underlying trend for employment growth still appears to have firmed. However, if evidence continues to build of weaker employment growth in the coming months it will encourage expectations of further RBA easing which would weigh on the Australian dollar.”
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Source:: FX Street