Skip to content

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% 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. 69% 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.

ASX hits intraday high after latest unemployment data

The recent lift in Australia’s unemployment rate may allow the RBA to consider slowing down the rising interest rate as early as October.

Source: Bloomberg

The Australian Bureau of Statistics (ABS) reported Australia’s unemployment rate for August on Thursday, September 15th. The seasonally adjusted unemployment rate rose surprisingly to 3.5 percent in August 2022, higher than the expected 3.4%.

According to the reading, Australia's strong economy is luring more workers into an extraordinarily tight labour market with full-time employment jumping by 58,800 in August, offsetting a drop of 25,300 in part-time jobs. Seasonally adjusted working hours also increased by 0.8 percent, fully reversing July's decline in hours worked.

Source: Trading Economics

What would be the impact?

The surprising job data comes as the RBA considers the possibility of another 50 bps hike for October, following the US's hotter-than-expected CPI. Up until September 14th, the market has indicated a 67% expectation of an interest rate increase to 2.85% (another 50bps) at the next RBA Board meeting.

Source: ASX

The RBA has delivered four consecutive 50 bps increases since May, but governor Philip Lowe has recently signalled that the board could ease higher interest rates from October if the economic data supports the pivot.

Given the unexpected lift in the unemployment rate, suggests the labour market may have reached its total capacity thus allowing this to be possible.

ASX 200 technical analysis

The encouraging unemployment print helped to restore confidence in the ASX market after the previous day’s tumble. As shown in the daily chart, the level of 6791 has played as massive support since early September. Therefore, sellers should keep a close eye on this level once breached as that may trigger a new round of selling. On the other hand, buyers should be ready for any bounce from this level to be challenged by the imminent resistance at 6916, where the 20-day MA sits.

ASX 200 daily chart

Source: IG

This information has been prepared by IG, a trading name of IG Markets Ltd and IG Markets South Africa Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. 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. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.

Start trading forex today

Trade the largest and most volatile financial market in the world.

  • Spreads start at just 0.6 points on EUR/USD
  • Analyse market movements with our essential selection of charts
  • Speculate from a range of platforms, including on mobile

Find out more

Live prices on most popular markets

  • Forex
  • Shares
  • Indices

Prices above are subject to our website terms and agreements. Prices are indicative only

Plan your trading week

Get the week’s market-moving news sent directly to your inbox every Monday. The Week Ahead gives you a full calendar of upcoming economic events, as well as commentary from our expert analysts on the key markets to watch.

You might be interested in…

<h3>How much does trading cost?</h3>
<h3>Find out about IG</h3>
<h3>Plan your trading</h3>

Find out what charges your trades could incur with our transparent fee structure.

Discover why so many clients choose us, and what makes us a world-leading provider of CFDs.

Stay on top of upcoming market-moving events with our customisable economic calendar.