Aussie dollar pops upon strong employment data

New ABS figures show Australia’s unemployment rate in the month of August 2018 has decreased to 5.3%, dropping slighting from the trend unemployment rate of 5.4% in July 2018.


The Australian dollar jumped slightly upon the news. AUD/USD jumped from 0.7177 to 0.7799.

ABS Chief Economist Bruce Hockman said both trend unemployment and underemployment rates havealso dropped since August.

“As a result, underutilisation in Australia was at its lowest level since late 2013, at 13.6 per cent." Mr Hockman said.

According to the ABS, seasonly adjusted terms show 44,000 new jobs added to in total, almost double what was expected (18,000).

Participation rates jumped slightly higher by 0.2% to 65.7%, and the seasonally adjusted unemployment rate remained steady at 5.3 % as economists predicted.

While full-time employment rose 33,700 in seasonally adjusted terms, part time rose by 10,200.

The underemployment rate also dropped to 8.1%, while full-time employment increased in August by 21,000.

"For those people aged 15 to 64 years, trend participation was the highest on record. Female participation in this age group, at 73.2 per cent, was also a record high," Mr Hockman said.

IGA, may distribute information/research produced by its respective foreign marketing partners within the IG Group of companies pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the research is distributed in Singapore to a person who is not an Accredited Investor, Expert Investor or an Institutional Investor, IGA accepts legal responsibility for the contents of the report to such persons only to the extent required by law. Singapore recipients should contact IGA at 6390 5118 for matters arising from, or in connection with the information distributed.

This information/research prepared by IGA or IG Group is intended for general circulation. It does not take into account the specific investment objectives, financial situation or particular needs of any particular person. You should take into account your specific investment objectives, financial situation or particular needs before making a commitment to trade, including seeking advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. In addition to the disclaimer above, the information does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. Any views and opinions expressed may be changed without an update.

See important Research Disclaimer.

Find articles by writer

Find out more about