Weak Aussie Employment Report Heightens Chances of More Stimulus Measures - Forex News by FX Leaders
AUD/USD slides on Aussie employment report release

Weak Aussie Employment Report Heightens Chances of More Stimulus Measures

Posted Thursday, November 14, 2019 by
Arslan Butt • 1 min read

Employment in Australia experienced the steepest decline in three years during October, with net new jobs falling by 19,000. Australian unemployment rate also rose to 5.3% in October, going against the slight improvement posted in September. Analysts had anticipated a decline by 15,000 jobs while the unemployment rate came in as expected.

Worsening employment data will likely add more pressure on the RBA to roll out more stimulus measures to support the decline in Australian economy. The weak unemployment report is also likely to up the chances that the government could step in with a stimulus package to support economic growth.

The RBA has already cut rates thrice so far to a record low of 0.75%, but it has failed to have an impact on other sectors of the economy other than home price inflation, which registered an improvement. For now, markets have pegged the likelihood of the next rate cut in December at 24%, while there is a 62% possibility of the RBA cutting rates in February.

On the release of this news, the Australian dollar has weakened and slid below the 0.6800 level against the US dollar. At the time of writing, AUD/USD is trading at around 0.679.

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About the author

Arslan Butt // Index & Commodity Analyst
Arslan Butt is our Lead Commodities and Indices Analyst. Arslan is a professional market analyst and day trader. He holds an MBA in Behavioral Finance and is working towards his Ph.D. Before joining FX Leaders Arslan served as a senior analyst in a major brokerage firm. Arslan is also an experienced instructor and public speaker.
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