The Aussie Dollar drops after Australia’s jobs data was surprisingly weak, casting doubt on how soon the central bank may raise interest rates.
Employment decreased by 22,100 (0.2%) to 11,436,500. Full-time employment decreased by 49,100 to 8,056,800. Meanwhile, part-time employment increased by 26,900 to 3,379,700. Unemployment decreased by 9,800 (-1.7%) to 583,000. The number of persons looking for full-time work decreased by 1,700 to 413,000 and the number of persons looking for part-time work decreased by 8,100 to 170,000. The unemployment rate remained steady at 4.9%.
Aggregate monthly hours worked decreased 14.7 million hours to 1,601.6 million hours.
Upon the release of the news, the Australian Dollar plummeted against the US Dollar, falling from 1.0690 down 85 pips to 1.0606 within one minute. The pair continued to drop for 20 minutes to as low as 1.0585 then settled around 1.0600.
EURAUD spiked up by over 90 pips in a minute from 1.3295 to 1.3386.
Jobs data is compiled by the Australian Bureau of Statistics and records the change in the number of employed people during the previous month. Job creation is an important leading indicator of consumer spending, which accounts for a majority of overall economic activity.