Credit Agricole CIB Research discussed AUD outlook in light of this week's AU Labor data print.
"Australia’s labour market data surprised significantly to the downside. Instead of rising by +25k jobs as the consensus forecast expected, employment declined by 14.6k jobs. The unemployment rate increased by 10bp to 3.5% vs market expectations for it to remain steady at 3.4%. The market immediately reduced the chances of a 25bp rate hike by the RBA from close to 80% to about 50% on the back of the data," CACIB notes.
"The monthly data suggests further acceleration towards the RBA's projected peak of 8%. Investors were likely waiting for the Australian labour market data release to sell the AUD on the back of weakening sentiment due to growing concerns about global growth. The data adds to the near-term weight on the currency,"CACIB adds.