AUD: Focus on the labor report; what to expect? - Barclays
The focus of AUD traders will be on the Australia's labor market report at 0130 GMT.
In that regard, Barclays Capital Research expects wage growth to remain modest, but to show a bottoming in Q1 17 (Barclays: 0.6% q/q and 2.0% y/y; last: 0.5%/1.9%).
On employment, Barclays thinks a negative pullback is likely after the surge in employment and disruption from Cyclone Debbie in Queensland, but underlying employment conditions should remain firm (Barclays: -35k; last: +60.9k).
Barclays expect the unemployment rate to edge lower to 5.8% (last: 5.9%).
Strategy-wise, Barclays maintains promoting selling AUD/NZD bounces.
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