The Australian money and its futures jump in yesterday’s trading after the positive data from the Australian unemployment rate. The upbeat note of the data lessened the worries about another rate cut from the RBA in the coming sessions.
The Australian dollar contract gained 0.93%, or 0.0063 points, in yesterday’s trading after the news was released.
Meanwhile, the AUD to USD exchange rate climbed up 1.06%, or 0.0071 points, yesterday. The pair fluctuated from $0.6723 to $0.6834 in Thursday’s sessions.
However, the gains against the New Zealand dollar were limited as the AUD NZD pair edged up by 0.29% or 0.0032 points. The AUD to NZD exchange rate reached ranges from NZ$1.0736 to NZ$1.0795 during the trading session.
And the AUD to CNY trading pair rose 0.82%, or 0.0387 points, yesterday. The pair extended its run from ¥4.7899 to ¥4.8343.
Australian money traders kept closely monitoring the Australian Bureau of Statistics’ report as it will determine the fate of the AUD.
The RBA’s main criteria for a November rate cut is the unemployment rate. But based on yesterday’s report, the fate of the Australian money appears positive.
RBA governor Philip Lowe emphasized in the past the RBA wants to boost the employment rate of the nation. The unemployment rate for September 2019 fell 0.1% from August’s 5.3% to 5.2%. The outcome surpassed the bank’s and experts’ forecasts of steady 5.3%.
The Reserve Bank of Australia’s own expectation is for the country’s unemployment rate to be at only 5% or better before 20212. This is one of the main reasons why the central bank’s board dismissed the arguments about the rate cut earlier this month.
The sudden increase is partly due to the government’s efforts and projects to support the RBA’s endeavors. New projects to extend health care and disability payments supported the share in the female workforce.