Australian Dollar Dips on Disappointing Employment Data

The Australian dollar dipped today after the employment report came out far worse than was expected, triggering speculations about possible interest rate cut.

Australian employment decreased by 10,800 jobs in August, while analysts have anticipated an increase by roughly the same amount. This reading followed the July drop by 11,400. As a result, the unemployment rate increased from 5.7 percent to 5.8 percent (it was expected). The poor data increases likelihood for the Reserve Bank of Australia to cut interest rates in the near future.

AUD/USD fell 0.9325 to 0.9248 and AUD/JPY dropped from 93.14 to 91.86 as of 11:29 GMT today.

If you have any questions, comments or opinions regarding the Australian Dollar,
feel free to post them using the commentary form below.

Be First to Comment

Leave a Reply

Your email address will not be published. Required fields are marked *