Australia's unemployment rate fell to a seasonally adjusted 5.1 per cent in August from 5.2 per cent in July, the Australian Bureau of Statistics said. Economists surveyed ahead of the data had expected a rise in the unemployment rate to 5.3 per cent.
In late afternoon trading, the Australian dollar bought $US1.0230 from $US1.0194 late on Wednesday, and Y80.17 from Y79.89 against thge Japanese yen. Traders pegged support at $US1.0170 and resistance at $US1.0250.
The drop in the headline jobless rate masked a weak underbelly to the data, however, with the participation rate --the number of people actively looking for work -- falling to 65 per cent from 65.2 per cent, its lowest level in five years.
Westpac analysts said that fall in the participation rate equated to 34,000 people leaving the workforce.
"If that's the way you're getting your low unemployment rate, it's not particularly healthy. We do want jobs," said Westpac foreign exchange strategist Sean Callow.
Nevertheless, Commonwealth Securities chief economist Craig James said the data were "no smoking gun" for the Reserve Bank of Australia to cut interest rates next month.
Swap market pricing shifted to a 57 per cent chance of an October cut from around 70 per cent heading into the data.
Citigroup economists said in a client note that the 75 basis points in rate cuts by the RBA in May and June were still working through the economy, providing "some insurance to any downside risks in the labour market".
All eyes tonight will be on a meeting of the European Central Bank for signs policymakers are preparing to take action to tackle the region's debt crisis. Markets have been on tenterhooks ever since ECB president Mario Draghi promised on July 26 that he would do whatever it takes to preserve the euro.
0 التعليقات:
Post a Comment
Note: Only a member of this blog may post a comment.