Australia May employment report posted an increase of +1.1k -vs- market forecasts of -10k. The unemployment rate dropped to +5.5% which was lower than the +5.6% estimates. Full time jobs fell by 5.3k while part time jobs rose by +6.4k and the participation rate was in line with forecasts at 65.2%. The AUD/USD, which had been trading at 0.9440, spiked higher to make session highs at 0.9523 before reversing course and retreating back to make session lows at 0.9430. Despite the initial enthusiasm generated by this report , the downward revisions to the previous data and the overvalued state of the Aussie suggests that the RBA will probably still have to consider the prospect of cutting rates further when they meet on July 02, 2013. Currently, the market is pricing in a 41% chance that they will indeed lower the rates to 2.50%.