Australian Dollar Benefits from Hot Unemployment, CAD Labor Market Data up Next

The Australian dollar managed to hold steady today thanks to last night’s exceptionally strong employment numbers. Not only did employment rise by 49.6k, but the unemployment rate actually fell to 4.4 percent, the lowest level since 1974.

The New Zealand dollar on the other hand did not see the same strength as unemployment increased from 3.7 to 3.8 percent. With interest rates at 7.75 percent, businesses are really feeling the pain, which explains why the ANZ business PMI index slipped from 56.8 to 54.2. Canadian unemployment is due for release tomorrow. The market is looking for softer employment growth. After 3 months of strong additions to the labor market, it will be logical to see a retracement in hiring. However, the employment component of the IVEY PMI increased in the month of April which suggests that any slowdown in hiring could be limited.