Aussie Tanks as Unemployment Posts Surprise Increase
The Australian dollar fell near 0.3% against its US counterpart this morning as the Australian Bureau of Statistics reported that the Australian unemployment rate increased to a seasonally adjusted figure of 6.0%, up from the 5.8% recorded in the preceding month.
The jump came as an unwelcome surprise to the markets who had been expecting the Australian unemployment rate to remain unchanged at 5.8% for January. The drop of 7900 jobs follows January’s addition of an extra 15000 in the Australian economy.
The disappointing set of figures comes just a week after the RBA announced a very positive set of minutes which whilst keeping a close on the slowing Chinese economy, painted an upbeat picture of the Australian economy – the world’s 11th largest economy.
It has been a difficult period for the Australian economy which is very much dependant on the continued economic health of its two largest trading partners – Japan and China. The increasing economic concerns over China, highlighted by a slowdown in growth, looks set to peg back the Australian Dollar. The Aussie is a commodity linked currency and has recently been boosted by a pick in gold prices, following another year of declines for the precious metal.
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