The January employment report, due to be published by the Australian Bureau of Statistics (ABS), will drop in at 00:30 GMT on Thursday. Ahead of the report, AUD/USD has eased off the five-week highs, reached at 0.7806 on Tuesday but solid jobs figures are set to revive AUD/USD’s bullish momentum, FXStreet’s Dhwani Mehta informs.
Key quotes
“The Australian economy is seen creating 40K jobs in January after registering a job gain of 50K in December. The participation rate is expected to hold steady at 66.2% despite the re-opening of the state of Victoria from coronavirus outbreak-led lockdown. The Unemployment Rate is expected to continue its declining trend, foreseen at 6.5% in the first month of 2021 vs. December’s 6.6%. The jobless rate could hit the lowest since April 2020.”
“Despite a likely improvement in the Australian labor market, unemployment is expected to take two to three years to return to pre-pandemic levels. Therefore, the Reserve Bank of Australia’s (RBA) is likely to maintain its dovish stance on the monetary policy until its inflation and unemployment targets are achieved.”
“A bigger-than-expected drop in the Australian jobless rate could revive the bullish momentum in the aussie, which could bring the 2021 tops at 0.7820 back in play.”
“A downside surprise in the jobs data could trigger a sustained break below the 0.7737 mark, exposing the horizontal 200-SMA at 0.7712.”