- Aussie unemployment a touch lower in September.
- AUD/USD has moved higher on the data, +0.34% at the time of writing.
Markets are looking for the Reserve Bank of Australia to cut again, potentially as soon as next month, so today’s labour force survey for September will be very closely watched (Markets are pricing 10bp of easing at the 5 Nov RBA meeting, and a terminal rate of 0.44% (RBA cash rate currently at 0.75%).
- Australia Sept Employment +14.7k (Reuters poll: +15.0k) – A miss.
- Australia Sept Unemployment rate +5.2 pct, (Reuters poll: +5.3/prior 5.2%) and bullish.
- Australia Sept Full-Time employment +26.2k vs prior 15.5k, bullish.
- Australia Sept Participation rate +66.1 pct, (Reuters poll: +66.2 pct) and bullish.
What was key in this report was the unemployment rate. The fact that the participation rate holds ner to a record high 66.2%, the unemployment rate holds near the 5.3% (a 12 month high). However, it was a touch lower in September and AUD/USD has moved higher on the data.
About the Unemployment Rate
The Unemployment Rate release by the Australian Bureau of Statistics is the number of unemployed workers divided by the total civilian labor force. If the rate hikes, indicates a lack of expansion within the Australian labor market. As a result, a rise leads to weaken the Australian economy. A decrease of the figure is seen as positive (or bullish) for the AUD, while an increase is seen as negative (or bearish).