October 14, 2021

Australian Jobs Data Gloomy, AUD Struggles to Defend Consolidation!

 Australian employment data became the focus of the market in the Asian session, which saw a less encouraging reading in unemployment rates and job changes in September.

According to a report from the Australian Bureau of Statistics (ABS), the unemployment rate rose slightly to 4.6% last month, from 4.5% previously recorded. However, this reading was better than the market expected to rise higher at 4.8%.

Meanwhile, the number of jobs was also declining with a decline of 138,000 recorded in September, worse than expectations for a decline of only 108,500.

Australian workforce participation has also shrunk by around 330,000 in the last three months when strict recording restrictions were imposed in Sydney and Melbourne.

The Australian Central Bank (RBA) has previously warned that unemployment is expected to rise 5% by the end of the year.

These figures further strengthen the RBA’s statement to maintain its weekly bond purchase rate until February next year and interest rates are expected to remain unchanged until 2024.

The Aussie dollar weakened slightly following this gloomy reading, but it also got support from the weakness of the USD in the Asian session.