AUD/USD set to test the bottom of the current range around 0.6560 – SocGen

Soft Australian jobs data have dragged the Aussie lower. AUD/USD is on track to challenge the 0.6560 mark, Kit Juckes, Chief Global FX Strategist at Société Générale report.

Gloom surrounds the AUD

“Employment fell by -4.3K after 113K in gains over the two previous months, but I’d rather look at the underlying trend which is a 28K monthly average gain in the first four months of the year, and a 32K average gain over the last 12 months.”

“Underlying employment growth is slowing slowly to just under 3% per annum, a rate most countries would love to see. Still, with the chances of further RBA hikes receding, AUD is set to test the bottom of the current range, around 0.6560.”