Breaking: Aussie Unemployment Rate unchanged, overall firm jobs, AUD/USD holding near 0.7206

Australia January jobs report has been released whereby the Unemployment Rate release by the Australian Bureau of Statistics, was unchanged but other key details of the data were bullish for AUD. 

The Employment Change beat expectations at +12.9K (vs the expected 0K) and the Unemployment Rate arrived at 4.2% (vs. the expected and prior 4.2%).

However, the Participation Rate for Jan was a touch higher also at 66.2% (est 66.1%; prev 66.1%).

AUD/USD update

AUD/USD is so far unreactive to the data in any great shape, moving between 6 pips of volatility around 0.7206.

There is a little surprise element in the data to lift AUD or shed new light on the outlook for interest rates, especially considering the ongoing support from the NSW and Victoria post-Delta reopening against the Omicron outbreak over the summer holidays.

Given that the Aussie is already at critical resistance and how markets are already pricing in rate hike prospects from the Reserve Bank of Australia, the focus from a technical standpoint is weighted to the downside. However, the data should prevent a hard landing of any sort and should be bullish for AUD.

AUD/USD weekly chart

About the Unemployment Rate

The Unemployment Rate released by the Australian Bureau of Statistics is the number of unemployed workers divided by the total civilian labour force. If the rate hikes indicate a lack of expansion within the Australian labour market. As a result, a rise leads to weakening the Australian economy. A decrease of the figure is seen as positive (or bullish) for the AUD, while an increase is seen as negative (or bearish).