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THE TAKEAWAY: Australian Employment data came in worse than expected for the month of March as the nation’s currency fell sharply against the U.S. Dollar.
Ahead of the Australian employment data release, China released its New Yuan Loans and Foreign Exchange Reserves figures. The New Yuan Loans printed 1060 billion which surprised economists who were expecting 900 billion compared to a previous months value of 620 billion. The Australian Dollar rallied slightly as investors saw institutions lending more money in China as good news for growth. This move however was dwarfed by the slump in the so called ‘Aussie’ as the employment data for the month of March was released.
March saw Australian unemployment rise from 5.4 per cent in February to 5.6 per cent in March with economists expecting that figure to remain unchanged. The positive employment change in February of 71.5K was revised to 74.0K which made the March print of -36.1K even more disappointing. The participation rate which shows the percentage of the population currently employed or actively looking for work fell too with an expectation of 65.2 per cent proving optimistic as the March value yielded 65.1 per cent.
After hovering above the 1.0540 mark against the Greenback ahead of the data release, the Aussie Dollar fell to below 1.0510 before recovering slightly to 1.0520.