Credit Agricole CIB Research discusses AUD outlook in light of this week's Australia jobs market report.
"Australia's labour market data for February was better than the consensus expected. Employment added 64.6k jobs, the unemployment rate dipped from 3.7% to 3.5% and back close to a 50Y low, and underemployment is back near 15Y lows. This data shows that the decline in jobs in January was a statistical quirk and that the labour market remains tight. It should also keep the RBA on a hiking path in April," CACIB notes.
"In any case, the AUD will continue to struggle against safe haven currencies such as the JPY but should outperform other commodity currencies such as the NZD and the CAD on the back of the strong labour market data," CACIB adds.