The Aussie Dollar Plunges To The Bottom, Here's Why!

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 The Aussie dollar edged lower during the Asian session after a disappointing Australian jobs data reading in July.


The unemployment rate unexpectedly rose more than expected last month, rising to 3.7% from 3.5% in June.


The economy also recorded a loss of 14,600 jobs compared to an increase of 31,600 recorded the previous month.


This indirectly shows signs of strengthening the labor market in Australia starting to subside.


The data also reinforced expectations for the central bank to keep the current interest rate at 4.10% for the third month in a row at its next September meeting.



Employment strength has been a key factor in the RBA's confidence that Australia can avoid recession.


However, the latest data today showed that annual job growth slowed to 2.9% from 3.1% at the start of the year.


The rate is expected to moderate further as key indicators such as job advertisements are now declining.


As a result, the Aussie dollar continued to be pushed further to a 9-month low of 0.6383 against a stronger US dollar.

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