Aussie Unemployment Rate +6.9 % vs +7.1% expected, AUD under pressure

Australia’s September labour force survey has been released as follows:

Aussie Employment data 

• AUSTRALIA SEPT EMPLOYMENT -29.5K S/ADJ (REUTERS POLL: -35.0K)
• AUSTRALIA SEPT UNEMPLOYMENT RATE +6.9 PCT, S/ADJ (REUTERS POLL: +7.1)
• AUSTRALIA SEPT FULL TIME EMPLOYMENT -20.1K S/ADJ
•  AUSTRALIA SEPT PARTICIPATION RATE +64.8 PCT, S/ADJ (REUTERS POLL: +64.8 PCT)

AUD/USD update

Meanwhile, the Aussie has already been a major feature of today’s forex market, weaker following the Reserve Bank of Australis governor, Philip Lowe speaking at an event fanning rate cut hopes.

• Breaking: AUD/USD drops through key trendline support in a 0.57% move on RBA Lowe

Lowe has reaffirmed a case for additional easing as “economy opens up”. Forward guidance has strengthened and weighed on the currency sending it below critical trendline support:

(The above charts illustrates Bears seeking a discount on a restest of trendline support, now turned counter-trendline resistance).

”We expect the RBA to cut the cash rate to 0.1% in November. ‘Pure’ QE in November seems likely, but it may be delayed until next year, analysts at ANZ Bank explained. 

Description 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).