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

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

Aussie Employment data 

• Sept Employment -29.5k s/adj (Reuters poll: -35.0k).
• Sept Unemployment rate +6.9 pct, s/adj (Reuters poll: +7.1), 6.8 prior.
• Sept Full Time Employment -20.1k s/adj.
• Sept Participation Rate +64.8 pct, s/adj (Reuters poll: +64.8 pct).

Despite the improved data in the Unemployment Rate compared to the expectations, the Aussie is under pressure considering the Employment data is a far cry from August’s 111.0k increase in total employment that surprised to the upside.

Full-Time Employment is down 20.1k and the prior was +12.1K, revised from +36.2K. Part-time prior was a colossal 117K, revised from 74.8k.

Hence the bears stay in charge with AUD/USD down some 0.35% on the session so far. 

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. 

AUD/USD technical analysis

• AUD/USD Price Analysis: Bears on the move to break key trendline support​​​​​​

The weekly outlook is bearish as price moves lower from resistance in what is expected to be wave-3 that fills in the monthly wick.

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 indicate 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).