The Aussie payrolls data had been indicating that around 1 million had already been rendered inactive. Today’s official employment and unemployment statistics have been held in high anticipation and the data has finally arrived as follows:
Australian jobs data
Australia April employment -594.3k s/adj (Reuters poll: -575.0k)
Australia April unemployment rate +6.2 pct, s/adj (Reuters poll: +8.3)
Australia April full-time employment -220.5k s/adj
Australia April participation rate +63.5 pct, s/adj (Reuters poll: +65.2 pct)
AUD reaction
AUD has been mixed on the data with something for both the bears and bulls. More to come…
Prior to the data, in European and US trade, AUD/USD fell from 0.6480 to end the day around 0.6450 via 0.6524 the low. The pair sat at 0.6456 ahead of the release. AUD/NZD had been preserving its post-RBNZ gains, touching a six-month high before the event. (AUD/NZD extending the RBNZ RBA playoff-rally before key data). AUD/JPY had been playing out its risk correlating status and trading under pressure: AUD/JPY struggles around 0.69 the figure, bears in control.
COVID-19 second wave fears and trade wars are an inevitable weight for the currency to bear. More on that here China reports 12 new asymptomatic coronavirus cases and AUD/USD falls towards the bottom of the week’s range, bearish bias prevails.
Description of The Unemployment Rate
The Unemployment Rate released by the Australian Bureau of Statistics is the number of unemployed workers divided by the total civilian labour force. If the rate hikes, this indicates a lack of expansion within the Australian labour 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).
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