Today, the Australian Bureau of Statistics (ABS) released employment numbers for the month of May. The numbers were mixed, with the unemployment rate dropping to 5.4%. This was better than the expected 5.5% and lower than last month’s 5.6%. The number was the lowest it has been since 2012. The other numbers released today were not all that positive. The participation rate dropped 65.5%, which was worse than the expected 65.6% and last month’s 65.6%. This number measures the share of the working-age population either working or looking for work. In addition, the number of people who were employed in the month were 12K, which was lower than the expected 18K.
The AUD/USD pair established a double top position at 0.7676 on Thursday last week. Since then, the pair has moved lower, reaching a low of 0.7528 after today’s data. It is now trading at 0.7556, which is the 23.6% Fibonacci Retracement level and an important support. The hawkish Fed could force the pair to continue going down. This could come after the pair reaches the 50% retracement level of 0.7600 as shown below.