Yesterday Unemployment came in at a disappointing 6% after expectations of 5.9%. Investors saw the AUD fall immediately after the announcement came out. However, the AUD found support in the employment change figure as it came in above expectations. This figure came in at 15,900 jobs created, expectations were 12,000 jobs and a previous figure of -5100 jobs created (Lost). This limited the loss that occurred mid yesterday as the figures somewhat balanced out investors signals.
The Unemployment Rate is currently sitting on the same figure as it was in the month of February. Since February, investors have found a continually decrease of the Unemployment Rate, this has benefited the AUD. However, in one month it seems Australia is on square one after a few hiccups in the economy.
Further to note out of the United Kingdom (UK), The Bank of England chose to hold Interest Rates at a steady 0.5%. Governor of the Bank of England (BoE), Mark Carney, has had added pressure over the last few months to increase rates as fears of a property bubble have been building (pardon the pun). Investors are expecting Carney to raise rates next month, further cementing his position as the “Unreliable Boyfriend”, in other words he has recently shown more words than actions.
Overnight the AUD surprisingly held its ground as investors in the European and United States (US) session held their positions in the AUD. The AUD has opened up slightly weaker today (Friday) and we expect it to remain at these levels for the rest of the week heading into Friday night.