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Jobs Were Strong

Aussie Jobless Rate Back to Pre-Virus Levels

Posted Thursday, March 18, 2021 by
Rowan Crosby • 1 min read

The unemployment rate in Australia has seen a dramatic fall, falling back to pre-China virus levels.

The official data from the ABS showed the jobless rate fell to 5.8% I’m February, beating expectations considerably, with economists predicting a far higher number at 6.3%. The big jump was also felt in the total number of jobs created, with an 89K increase in that same period of time, above the 30K predicted.

The news was bullish for the AUD/USD and it surged higher on the release taking it back above the 0.7800 level.

Interestingly, the data came on the back of the FOMC, which continues to take a very dovish tone with the likelihood of rate rises still very low.

We have also been seeing bond yields jump higher and the Aussie 10-year is now at 1.77%, slightly off its moist recent highs of 1.9%. Now, let’s compare that to the official cash rate at 0.1% and it’s clear as day that everyone except the RBA is feeling pretty bullish right now.

Without a doubt, the China virus has been nothing more than a farce, that needlessly shut down the world’s economy. As more and more people see that it’s clear that businesses and jobs are not going to be at risk going forward, short of more terrible Government decisions. Let’s not rule that out of course, given what we’ve seen.

The AUD/USD is now back looking very strong and is through 0.7800. We saw price drift to 0.7700 to the pip, before charging higher on the back of the FOMC. We have got resistance at current levels, however, if price can break through, then I suspect there is more upside ahead.

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