Mixed labour data has been keeping the AUD under pressure recently.
Although employment rose more than expected, it was mainly due to a rise in part-time jobs. More importantly, the unemployment rate rose back to multi-year highs.
However, we do not expect the latest data to make a case of the RBA turning more dovish. In fact, it was stressed already by the RBA that additional labour market weakness is anticipated.
From that angle central bank rate expectations are unlikely to change considerably. This in turn suggests that the currency will be more driven by global risk sentiment, which we expect to stabilize again.
Accordingly we stick to the view that the AUD should be bought on dips against the USD.
Credit Agricole