Aussie Jumps on Unexpected Rise in Employment Figures
THE TAKEAWAY: Australian Employment Figures Feature Unexpected Boost > Unemployment Falls, Aided by Large Increase in Part Time Employment > AUDUSD Jumps
Employment data published by the Australian Bureau of Statistics show an increase of 46,300 jobs in the Aussie economy, causing the unemployment rate to drop from 5.2 percent to 5.1 percent. Both full time and part time work figures increased. The former added 12,300 positions to payroll; the latter, 34,000. The overall participation rate increased to 65.3 percent from 65.2 percent a month earlier.
Analysts expected the unemployment rate to rise this month and a modest increase in total employment driven by a small rise in part time work. Neither analysts nor the markets expected an improvement of such magnitude this month, and traders were forced to price in the change, boosting the AUDUSD upward.
The Aussie had been trending downward throughout the day, and trading immediately following the employment report’s release shows buying pressure providing the currency a respite.
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.