Aussie Weakens Ahead of Employment Report, Pares Losses

The Australian dollar dropped today ahead of the employment report later this week. The report is expected to be rather bad and the resulting pessimism added to the general negative mood on the Forex market that was caused by fears of global economic slowdown. Yet the Australian currency managed to rebound after the initial losses.

Analysts estimated, before the report from the Australian Bureau of Statistics that will be released on July 12, that Australia’s employment rose by meager 300 jobs in June, compared to the growth by 38,900 in May. Moreover, the unemployment rate is expected to rise by 0.1 percentage point to 5.2 percent. Other markets were also negative for riskier currencies like the Aussie: the Standard & Poor’s 500 Index dropped 0.2 percent and the MSCI World Index declined 0.4 percent. That did not prevent the currency from rallying after the earlier decline.

AUD/USD climbed from 1.0206 to 1.0234 as of 10:34 GMT today, while earlier it fell to 1.0158.

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