Australian Dollar Unimpressed by June Employment Figures
• Australian Employment Grew 15.9K in June vs. 12.0K Expected, -5.1K in May
• Unemployment Rate Rose to 6.0% vs. 5.9% Expected, 5.9% in the Prior Month
• Aussie Dollar Fell Sub-Surface Weakness Clues Hurt RBA Policy Expectations
The Australian Dollar traded lower after Australia released June’s employment report despite a better-than-expected headline figure. The data revealed a 15,900 net jobs gain, topping economists’ forecasts calling for a 12,000 increase. The result failed to impress investors however.
The overall increase was driven by the addition of 19,700 part-time jobs, which only partially offset a hefty 27,200 decline in the prior month. Meanwhile, full-time employment marginally declined, showing a loss of 3,800 jobs. An unexpected increase in the unemployment rate to 6 percent – the highest since February 2014 – compounded worrisome cues in the data set.
AUD/USD spiked upward as higher-than-expected headline figure crossed the wires but gains proved short-lived, with prices coming off daily highs and racing toward the 0.94 figure. The drop tracked a decline in Australia’s benchmark 10-year bond yield, suggesting traders may have interpreted signs of labor-market weakness lurking behind the top-line number to mean the RBA will maintain an accommodative monetary policy posture for a relatively longer period.
AUD/USD [15 mins – 07/10/2014]. Chart created using FXCM Marketscope.
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