Australia’s employment figures for July were certainly worse than expected: the economy lost around 300 jobs, contrary to expectations for a gain of 13.5K jobs and after a gain of 14.9K in June. Worse off, the unemployment rate leaped from 6% to 6.4%, the highest since 2002 – around 12 years.
AUD/USD fell nearly 90 pips, from 0.9250 to 0.9262 before bouncing back, but it seems unable to recapture the .93 line.
The details are not that bad: economy lost 14.8K part time jobs and gained 14.5K full time jobs. And the shocking headline jump in the unemployment rate is due to a good reason: a rise of the participation rate from 64.7% to 64.8%, which is nearly 2% more than in the US.
Nevertheless, and unemployment rate at the highest level in over a decade cannot be good news. The unemployment rate is now higher than in the US, and this hasn’t been seen in a long time.
For events, analysis and levels, see the AUD to USD prediction.
Here is how it looks on the chart:
For reference, here is the preview: trading the Australian employment change with AUD/USD.Get the 5 most predictable currency pairs