Australia has produced another questionable jobs report, after the unemployment rate unexpectedly jumped to its highest level in over decade during July. This time around the Australian Bureau of Statistics indicated that 121K jobs were created during August, shattering analysts’ expectations of around a 15K increase in employment. At the same, the unemployment rate dropped back to 6.1% from 6.4% and the participation rate jumped to 65.2% from 64.8%, with both sets of numbers also beating expectations.
The report is being met with scepticism in the market by analysts who are questioning the validity of a 106,700 increase in part-time employment over only a month. Nonetheless, even if the report is revised to the downside further down the track, it was still a strong month for the Australian labour market. Apart from the encouraging, but possibly overestimated, jump in the participation rate, 14.3K full-time jobs were added over the month and July’s full-time employment figure was revised higher to 15.4K (prior 14.5K).
The Aussie
The Australian dollar shot higher on the back of the report, but it has since lost some of these gains on the back of the aforementioned scepticism about the report, weak Chinese inflation data and widespread USD strength. AUDUSD is now back below 0.920 after rising as high as 0.9220 in the immediate aftermath of Australia’s August employment numbers.
Source: FOREX.com
Recommended Content
Editors’ Picks
EUR/USD declines below 1.0700 as USD recovery continues
EUR/USD lost its traction and declined below 1.0700 after spending the first half of the day in a tight channel. The US Dollar extends its recovery following the strong Unit Labor Costs data and weighs on the pair ahead of Friday's jobs report.
GBP/USD struggles to hold above 1.2500
GBP/USD turned south and dropped below 1.2500 in the American session on Thursday. The US Dollar continues to push higher following the Fed-inspired decline on Wednesday and doesn't allow the pair to regain its traction.
Gold stuck around $2,300 as market players lack directional conviction
Gold extended its daily slide and dropped below $2,290 in the second half of the day on Thursday. The benchmark 10-year US Treasury bond yield erased its daily losses after US data, causing XAU/USD to stretch lower ahead of Friday's US jobs data.
Top 3 Price Prediction BTC, ETH, XRP: Altcoins to pump once BTC bottoms out, slow grind up for now
Bitcoin reclaiming above $59,200 would hint that BTC has already bottomed out, setting the tone for a run north. Ethereum holding above $2,900 keeps a bullish reversal pattern viable despite falling momentum. Ripple coils up for a move north as XRP bulls defend $0.5000.
Happy Apple day
Apple is due to report Q1 results today after the bell. Expectations are soft given that Apple’s Chinese business got a major hit in Q1 as competitors increased their market share against the giant Apple.