The Australian money or AUD is performing well in today’s trading as the unemployment rate in the country dips. Aussie traders have been closely watching the September labor market report of the country that could lead the RBA to cut rates again.
The Australian unemployment rate went down by 5.2% last month. The outcome did well against the expected 5.3% and its prior reading of 5.3%.
In contrast, the employment rate slightly missed at 14.7K to forecasts of 15.0K. The report was released by the Australian Bureau of Statistics earlier today.
The upbeat data was enough to cause the Australian money to surge in trading sessions.
The AUD to USD exchange rate went up by 1.08% or 0.0073 points today, trading for $0.6829. The pair extended its gains from $0.6723 to $0.06830 this Thursday’s trading.
Meanwhile, the Australian dollar contract rose 0.99% or 0.0067 points in today’s sessions.
The slight improvement in the unemployment data from Australia was enough to lessen the worries about another rate cut.
AUD traders had a sigh of relief as the data could reduce the chances of another rate cut from the RBA in November.
In past interviews, the Reserve Bank of Australia’s governor Philip Lowe cited that the employment rate is the main factor for their decision. Lowe is currently favoring to leave the rate at 0.75%.
Traders perceived the unemployment data as a vote of confidence for the Reserve Bank of Australia and the Australian money.
Earlier this day, the central bank also released its annual report revealing the bank’s profit.
The Reserve Bank of Australia posted a net profit increase of 18% to AU$4.55 billion from AU$3.85 last year. Last year, the Australian money lost more than 8% against concerns about the slowing global and domestic growth.
The country’s official reserve assets totaled AU$77.5 billion as of June 30. Australia’s official reserve assets include foreign currency assets, gold, and international reserve assets of the IMF.
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