Aussie Unemployment Rate overview
Early Thursday sees the latest jobs report from Australia at 01:30 GMT, and recent figures from Australia including job ads and wage growth are strongly suggesting that this month’s reading of the Aussie Unemployment Rate and Employment Change could soften compared to the previous period. Australia’s seasonally-adjusted Unemployment Rate is forecast to hold steady at 5.4%, while the Employment Change is expected to report a notably softer 15 thousand new jobs added, far under the previous period’s 50.9 thousand new jobs.
How could it affect the AUD/USD?
The Aussie is already trading into the soft side ahead of the jobs report, with the AUD/USD testing into 0.7230, and despite the fact that traders are already expecting a moderate contraction in the current figures, a worse-than-expected contraction could see the legs get swept out from underneath the AUD, while the current technical position for the AUD/USD is already steeply into the bearish camp, as noted by FXStreet’s own Valeria Bednarik: “in the 4 hours chart, the latest recovery was barely enough to leave technical indicators flat well into negative territory, while the price remains far below all of its moving averages, with the 20 SMA maintaining its strong downward slope. A steeper decline should be expected on a break below 0.7190 with scope then to extend its decline toward the 0.7150/60 region, where the pair has relevant monthly lows from 2016.”
Support levels: 0.7190 0.7155 0.7110
Resistance levels: 0.7265 0.7300 0.7330
Key notes
AUD/USD analysis: jobs’ creation expected to have moderated in July
About the Australian 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).
About the Australian Employment Change
The Employment Change released by the Australian Bureau of Statistics is a measure of the change in the number of employed people in Australia. Generally speaking, a rise in this indicator has positive implications for consumer spending which stimulates economic growth. Therefore, a high reading is seen as positive (or bullish) for the AUD, while a low reading is seen as negative (or bearish).
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