CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 75% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 75% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 75% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

Aussie jumps on decent employment report

06:03 17 October 2019

Summary:

  • Australian labour market added almost 15k new jobs in September
  • A drop in unemployment was offset by a corresponding decline in participation
  • Aussie leads the gains in G10 as rate cut odds slightly recede

The Australian economy added 14.7k new jobs in September, a number just subtly below market expectations calling for a 15k increase. Moreover, additional jobs came solely from full-time employees (+26.2k) while part-time employment fell 11.4k. Concurrently, we were offered a surprise in the form of an unexpected drop in unemployment to 5.2% from 5.3%. However, this drop was fully offset by a corresponding decline in the labour force participation rate which ticked down to 66.1% from 66.2%. On top of that, let us notice that the latest uptick in unemployment coincided with a continued uptrend in the labour force participation rate, being a clear signal of a qualitative change in the Australian labour market (more people have been encouraged to get a job). 

On the other hand, the current level of unemployment is still well above the one desired by the Reserve Bank of Australia wanting to take it down to 4.5% in order to get the tighter market and thereby exert upward pressure on wage and ultimately push inflation to the desirable area. Today’s release turned out to be a positive factor for the Aussie dollar being the strongest major currency this morning. This is a result of slightly receding odds for lower rates there by the year-end. Nevertheless, we doubt any long-lasting rebound in the Aussie in the foreseeable future.

The pace of jobs creation in Australia has eased recently while the jobless rate has ticked higher. Source: Macrobond, XTB

This content has been created by X-Trade Brokers Dom Maklerski S.A. This service is provided by X-Trade Brokers Dom Maklerski S.A. (X-Trade Brokers Brokerage House joint-stock company), with its registered office in Warsaw, at Ogrodowa 58, 00-876 Warsaw, Poland, entered in the register of entrepreneurs of the National Court Register (Krajowy Rejestr Sądowy) conducted by District Court for the Capital City of Warsaw, XII Commercial Division of the National Court Register under KRS number 0000217580, REGON number 015803782 and Tax Identification Number (NIP) 527-24-43-955, with the fully paid up share capital in the amount of PLN 5.869.181,75. X-Trade Brokers Dom Maklerski S.A. conducts brokerage activities on the basis of the license granted by Polish Securities and Exchange Commission on 8th November 2005 No. DDM-M-4021-57-1/2005 and is supervised by Polish Supervision Authority.

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