Australian Dollar Drops from Six-Month High After Disappointing Jobs Data
- AUD/USD retreated from 6-month highs after Australia’s jobs report crossed the wires
- The economy lost 9.8k employees – primarily ‘full-time’ – instead of the 15k gain projected
- Front end bond yields fell alongside the currency, implying a dovish outlook
See what live coverage is scheduled to cover key event risk for the FX and capital markets on the DailyFX Webinar Calendar.
The Australian Dollar dropped against its US counterpart after six consecutive days of gain on news of unexpected job losses in September. The data showed that the Australian economy lost 9,800 jobs in September, significantly worse than the 15,000 gain that was expected by economists. A more surprising statistic in the labor data was the full-time employment change. Against a previous addition of 10,100 permanent jobs, the economy shed 53,000 positions. For balance, part-time positions rose 43,200 jobs (previously the dropped by 18,600).
September’s unemployment rate fell to 5.6 percent compared to 5.7 percent expected and 5.7 percent in August, while the labor force participation rate decreased to 64.5 percent versus the 64.8 percent increase estimated. Notably front-end bond yields fell along with the currency, suggesting the market believes that this data could push the firm wait-and-see-posture that the RBA has maintained in recent months.
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.