AUD/USD Dips Below 0.7150 as Weak Jobs Data Cuts RBA Hike Odds

The Australian dollar weakened further on May 22, slipping below 0.7150 after April employment data surprised sharply lower. Markets quickly scaled back expectations for near-term RBA tightening, with the probability of a June hike falling to around 40%. The move followed an initial drop below 0.7100 on May 21 when the unemployment rate jumped to 4.5% and employment contracted by 18,600. Earlier modest support from May consumer confidence gains on May 19 was quickly overshadowed by the weak labour print and crowded long positioning flagged by analysts.