AUD resilience to extend as domestic recovery offsets commodity drag

In Australia, the labour market appears to be on the mend, as reflected in the steady improvement in the labour market conditions index. In November, though, the market is expected to take a breather and are expecting employment to be unchanged and the unemployment rate to tick up to 6% (Thursday). 

"Given the volatility of the monthly numbers, we would not be surprised if employment fell in the month following the roughly 60K gain in October", says Barclays.

With signs that the weaker AUD exchange rate is helping to boost domestic activity (in particular the services sector), the recent improvement in domestic business and labour market conditions is helping to support AUD resilience, even though commodity prices have continued to slide.