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A 6-year low unemployment rate does not support AUD

Published October 19, 2018

Author: Dennis Li

Yesterday our unemployment rate dropped unexpectedly to 5%, the lowest since April 2012 but it did not provide much support to the AUD as the data reflected a decline in the number of people actively looking for work rather than a surge in hiring. The AUDUSD gave up all of its weekly gains, dropping 50 points overnight.

  • The European Commission warned Italy that its 2019 budget draft is in serious breach of the EU budget rules, which prepares the ground for a an unprecedented rejection of a member state’s fiscal plan.
  • Japan’s exports fell in September for the first time since 2016 as shipments to the US and China declined, adding to concerns about the broadening impact of an escalating US-China trade war.
  • New applications for US unemployment benefits dropped last week with continued jobless claims hitting the level last seen in 1973, suggesting a further tightening in the US labour market conditions.
  • The US government yesterday refrained from naming China or any other trading partner as a currency manipulator amid an escalating trade war between the world two biggest economies.