Snapshot: The Australian Dollar is trading softer after a surprise rise in the Australian unemployment rate to 4.5%. The weak labour market data has dampened expectations for further RBA rate hikes. The U.S. Revised UoM Consumer Sentiment is due at 10:00 ET.
- A break below $0.7100 would signal further downside, potentially opening the door to a test of the $0.7050 level.
- Watch for spillover from the U.S. Revised UoM Consumer Sentiment release at 10:00 ET; a large beat could provide a boost to the USD.
Bias into NY: Short AUDUSD. The weak employment print reinforces the RBA’s cautious stance, as Bullock stated inflation progress is ‘still uneven’, making it less likely they will commit to an aggressive tightening path; crowded long positioning heightens squeeze risk on further data disappointment.