-
The strong labor market decreased market expectations that the Reserve Bank of Australia (RBA) would lower interest rates, as maintaining higher rates may be necessary to manage inflationary pressures.
-
In response to the positive employment data, the AUDUSD pair increased by approximately 0.70%, reaching around 0.6710 USD.
-
Financial investors are recalibrating their outlook, reducing the likelihood of near-term monetary easing by the RBA due to sustained employment growth.
The Australian labor market showed surprising resilience in September 2024, with employment surging by 64,100 - more than double the anticipated 25,000 increase. The unemployment rate held steady at 4.1%, maintaining its position over the past six months, while the participation rate climbed to a record high of 67.2%. These robust figures underscore a tightening labor market, contributing to the Australian dollar's strength in currency markets. The unemployment rate remained steady at 4.1%, consistent with its level around 4.0-4.2% over the past six months, indicating a stable and tight labor market. The participation rate climbed to a record high of 67.2%, suggesting that more individuals are entering the workforce and successfully securing employment.
- Employment rose by 64,100 in September 2024, more than double the forecasted increase of 25,000.
- Increased by 51,600, showing significant growth in stable, full-time positions.
- Unemployment Rate remained steady at 4.1%, consistent over the past six months, indicating a stable labor market.
- Participation Rate climbed to a record high of 67.2%, suggesting more individuals are entering the workforce.
AUDUSD (D1 interval)
In reaction to the strong employment data, the Australian dollar experienced a significant appreciation. The AUDUSD pair climbed approximately 0.70%, reaching around 0.6710 USD. This upward movement reflects investor sentiment that the RBA may delay interest rate cuts, given the robust labor market and its potentially pro-inflationary effect. Following the release of the data, AUD remains the strongest currency among the G10 currencies gaining between 0.40-0.60%.
Start investing today or test a free demo
Create account Try a demo Download mobile app Download mobile app
Start investing today or test a free demo
Create account Try a demo Download mobile app Download mobile app
Source: xStation 5
The content of this report has been created by XTB S.A., with its registered office in Warsaw, at Prosta 67, 00-838 Warsaw, Poland, (KRS number 0000217580) and supervised by Polish Supervision Authority ( No. DDM-M-4021-57-1/2005). This material is a marketing communication within the meaning of Art. 24 (3) of Directive 2014/65/EU of the European Parliament and of the Council of 15 May 2014 on markets in financial instruments and amending Directive 2002/92/EC and Directive 2011/61/EU (MiFID II). Marketing communication is not an investment recommendation or information recommending or suggesting an investment strategy within the meaning of Regulation (EU) No 596/2014 of the European Parliament and of the Council of 16 April 2014 on market abuse (market abuse regulation) and repealing Directive 2003/6/EC of the European Parliament and of the Council and Commission Directives 2003/124/EC, 2003/125/EC and 2004/72/EC and Commission Delegated Regulation (EU) 2016/958 of 9 March 2016 supplementing Regulation (EU) No 596/2014 of the European Parliament and of the Council with regard to regulatory technical standards for the technical arrangements for objective presentation of investment recommendations or other information recommending or suggesting an investment strategy and for disclosure of particular interests or indications of conflicts of interest or any other advice, including in the area of investment advisory, within the meaning of the Trading in Financial Instruments Act of 29 July 2005 (i.e. Journal of Laws 2019, item 875, as amended). The marketing communication is prepared with the highest diligence, objectivity, presents the facts known to the author on the date of preparation and is devoid of any evaluation elements. The marketing communication is prepared without considering the client’s needs, his individual financial situation and does not present any investment strategy in any way. The marketing communication does not constitute an offer of sale, offering, subscription, invitation to purchase, advertisement or promotion of any financial instruments. XTB S.A. is not liable for any client’s actions or omissions, in particular for the acquisition or disposal of financial instruments, undertaken on the basis of the information contained in this marketing communication. In the event that the marketing communication contains any information about any results regarding the financial instruments indicated therein, these do not constitute any guarantee or forecast regarding the future results.
