AUD/USD dives to near 0.6630 on downbeat Australian Employment data

• AUD/USD has witnessed a sharp decline to near 0.6630 as Australian Unemployment Jumped to 3.7%.
• The Australian labor market has recorded a decline in the number of payrolls by 4.3K in April vs. addition of 25K as estimated.
• Investors are anticipating a steady interest rate policy by the Fed in its June monetary policy meeting.

The AUD/USD pair as the Australian Bureau of Statistics has reported Employment (April) data. In April, the Australian labor market recorded a decline in the number of payrolls by 4.3K while the street was anticipating fresh additions of 25K jobs. The Unemployment Rate has jumped sharply to 3.7% vs. the consensus and the former release of 3.5%.

On Wednesday, the Australian Bureau of Statistics came with Q1 Wage Price Index data. The quarterly labor cost index remained steady at 0.8% but lower than the estimate of 0.9%. On an annual basis, the economic data accelerated to 3.7% vs. the consensus of 3.6% and the former release of 3.3%.

As the Australian labor market is releasing heat significantly, the Reserve Bank of Australia (RBA) might consider a pause in further rate hikes in June.

Meanwhile, S&P500 futures have witnessed some correction in early Asia after a significantly bullish Wednesday settlement. The overall market mood is quite cheerful as the deal of raising the US debt ceiling by the weekend seems promising. US President Joe Biden and other Democratic leaders have admitted that a raise in US borrowing cap and spending initiatives would be a disaster. Therefore, the proposal of default is off the table.

The US Dollar Index (DXY) has sensed selling pressure near 102.90 after a less-confident pullback as investors are anticipating a steady interest rate policy by the Federal Reserve (Fed) in its June monetary policy meeting.