The Australian economy shed 9,800 jobs in September, significantly worse than a gain of 15K expected. The unemployment rate remained unchanged at 5.6%. While the latter figure is better than expected, it comes on top of a drop in the participation rate: from 64.7% to 64.5%.
Also the breakdown of employment is far from encouraging, to say the least. Full time employment is down 53K while part-time employment is up 43.2K, certainly not good news.
AUD/USD is sliding from the highs. The pair had already made a break to higher ground, making a move against the 0.7740 level, but after the data came out, we are back to battling the 0.77 level. Further support awaits at 0.7660.
The Australian dollar enjoyed a somewhat more hawkish tone coming out from the new RBA governor Lowe. His lack of urgency to cut interest rates underpinned the Aussie. However, the data takes its toll, as we’re seeing right now.
Here is our preview: trading the Australian employment change with AUD/USD
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