No signs of easing in Australian labour market to support AUD – Commerzbank

The labour market report, due for publication on Thursday at 00:30 GMT, is important for the Australian Dollar. Economists at Commerzbank discuss how employment figures could impact the Aussie.

AUD to come under pressure on signs of rising unemployment

“In December employment fell, but the unemployment rate remained at 3.5%. If it were to emerge that unemployment is beginning to rise the market might adjust its expectations for the key rate, which it currently expects to peak in the area of 3.75-4%, to the downside which would put pressure on AUD.”

“If, on the other hand, the labour market does not display any signs of easing, the market is more likely to feel confirmed in its view that the RBA will have to do more, which should principally support AUD.”

See – Australian Employment Preview: Forecasts from six major banks, a January rebound