AUD: Job market remains robust - Commerzbank

After losing 57,500 jobs in February, the Australian labour market rebounded slightly in March with 32,200 new jobs, Commerzbank's FX analyst Volkmar Baur notes.

Australian labour market remains very robust

"Looking at March alone, the Australian labour market remains very robust. At 4.1%, the unemployment rate remains very low and well below pre-pandemic levels. Underemployment and youth unemployment also remain low."

"However, it should also be noted that employment figures are very volatile on a monthly basis. Looking at the three-month moving average, only 2,100 jobs per month have been created on average over the past three months, suggesting a significant cooling in the labour market."

"At its last meeting, the RBA emphasised that the strong labour market continued to be seen as a risk to inflation. However, the April jobs report will be released before the next meeting on 20 May. The significance of today's figures for the currency market is therefore limited, which explains the AUD's muted reaction this morning."