THE TAKEAWAY: Australia’s jobs report (Jan) dissapointed > With struggling AU economy, fears of RBA rate cut remain > AUD Bearish
Australia’s Unemployment Rate remained at 5.4% in January amid employment growth of 10,000 jobs according to the Australian Bureau of Statistics. While the unemployment rate remained unchanged from December, it slightly beat estimates of 5.5% and the labor force grew by 4,400 more jobs than anticipated by economists, according to Bloomberg. Following the release of the jobs data the AUD/USD rose and then retreated after Australia’s labor force participation rate was reported, which fell to 65% from 65.1%
As of recently, economic data coming out of Australia has continued to disappoint investors, who fear RBA rate cuts may be in store if the nation’s economy does not pick up. The jobs report does not appears to have eased any of those fears as the Aussie fell against major currencies following the report. The AUD spot rate currently stands at 1.0303, after reaching a high of 1.0333 on the day.
AUD/USD (Inter-day Chart 02/07/13)
(Created Using FXCM’s Marketscope 2.0 charts)