• Employment Change in June: +88.400 (forecast 30K, previous value 60.6K).
• June unemployment rate: 3.5% (forecast 3.8%).
• Labor force participation rate: 66.8% (forecast 66.7%, previous 66.7%).
• Full-time employment: +52,900.
• AUD/USD pushed back from lows near 0.6730 and absorbed Tokyo highs at 0.6761 after the report release, which now makes the target 0.6800 (previous day’s highs).

On the Unemployment Rate

The Australian Bureau of Statistics (ABS) publishes an overview of trends in the Australian labor market, and the unemployment rate is an indicator that everyone keeps an eye on. It is released about 15 days after the end of the month and sheds light on overall economic conditions as it is highly correlated with consumer spending and inflation. 

Even though it is a lagging indicator, it influences the Reserve Bank of Australia’s (RBA) interest rate decisions, which in turn affects the AUD’s exchange rate. An optimistic view is considered positive for the AUD.