Terrible! Falling Australian Unemployment Rate Stuns Markets


 The Asian market session was presented by the publication of Australian employment data which showed that the labor market continued to strengthen in the country.

Unexpectedly, the unemployment rate fell to a new low since 1974 at 3.4% in October from the 3.5% recorded in September and expected.

Employment rose by 32,200 last month, more than double the forecast increase of 15,000 and well above the previous record of a 3,800 decline.

The latest data, along with a strong wages report on Wednesday, supported the Reserve Bank of Australia's (RBA) policy tightening as it tries to curb the highest inflation in more than three decades.

The strength of the labor market is the main reason the central bank thinks it can avoid recession as interest rates continue to be raised.

Australian government bond yields rose following the data release, while the Aussie dollar was little changed as the latest figures were seen as unlikely to change expectations for a 25 basis point rate hike at the December policy meeting.