Australian Dollar Falls, but Recovers, Following Aussie Jobs Report
THE TAKEAWAY: Aussie Employment Loses 15.4 K Jobs > Employment Change Far Below Expected > AUDUSD Falls, but Quickly Recovers as Traders Await ECB Rate Decision
Employment data published by the Australian Bureau of Statistics show a decrease of 15,400 jobs in the Aussie economy, causing the unemployment rate to rise from 5.1 percent to 5.2 percent. The drop in jobs drew entirely from part time work, leaving full time employment unchanged. The overall participation rate decreased to 65.2 percent from 65.3 percent a month earlier.
Analysts expected the unemployment rate to rise this month and a modest 5,000 job increase in total employment. Neither analysts nor the markets expected a deterioration of such magnitude this month, and traders were forced to price in the change, dragging the AUDUSD downward momentarily. However, the European Central Bank interest rate decision, to be announced later today, was of larger interest to traders, so the AUDUSD quickly recovered from the drop.
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