Australian dollar down on unemployment rate
Published on 17.05.2018 16:13

The Australian dollar is under pressure today after the release of key employment figures added to the case for the Reserve Bank of Australia to keep rates on hold.

The unemployment rate in Australia climbed from 5.5 to 5.6 percent and although there was an increase in the jobs figures, it is the former that the RBA are most concerned with when it comes to lifting interest rates.

"Full time jobs added was healthy at 32.7k, so a small positive, but the unemployment rate going up and Deputy Gov Debelle stating that this is the BEST indicator of the labour market means RBA will remain on the sidelines for longer. Revisions were a touch negative too," noted says Annette Beacher, chief Asia Pacific macro strategist at TD Securities.

This is now the 3rd piece of disappointing economic data after the release of retail sales figures as well as wage growth figures yesterday which now has some analysts speculating that the RBA may even be forced to cut rates in order to put some life into the economy.

If these rumors start to gather steam and the market accepts that there is a real possibility of a rate cut the Australian dollar will likely rack up much bigger losses than we have recently witnessed.

The material published in on this page is produced by the FIBO group companies, and should not be considered as the provision of investment advice for the purposes of Directive 2004/39/EC; furthermore it has not been prepared in accordance with legal requirements designed to promote the independence of investment research and is not subject to any prohibition on dealing ahead of the dissemination of investment research.

Andrew Masters

Analyst

The world of trading has no boundaries

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 72% of retail investor accounts lose money when trading CFDs with this broker. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

×

Risk warning: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 72% of retail investor accounts lose money when trading CFDs with this broker. Before deciding to trade foreign exchange you should consider whether you understand how CFDs work, your investment objectives, your level of experience and readiness of taking risk. The possibility exists that you could sustain a loss of some or of all of your initial investments and therefore you should not risk more than you are prepared to lose. Please seek independent financial advice if necessary.

Important notice
By clicking "Continue" you will be redirected to the website operated by FIBO Group, LTD company registered in BVI and regulated by FSC. Please familiarize yourself with the Customer Agreement through the link. Click "Cancel" to remain on this page.