The Australian Dollar plummeted beyond a four-and-half year low against the Pound and made sharp declines against the US Dollar, Euro and the rest of its most traded peers as poor jobs data weighed heavily.
According to the Australian Bureau of statistics, employment fell by 22,600 in December, and Full time positions declined by 31,600. The data was far worse than economists had been forecasting. Full time positions were expected to rise by 7500.
The report also showed that the nation’s unemployment rate remained steady at 5.8% but that was only because the number of Australians that have given up looking for work rose. The overall participation rate declined to its lowest level since April 2006.
Against the US Dollar the ‘Aussie’ hit a three-and-a half year-low and against its New Zealand relation the currency tumbled to an eight-year low. The sharp decline came after data released early on Thursday showed that Australian employers cut jobs at their fastest pace in nine months in December and the number of full-time jobs declined to their lowest level since 2011.
“Today’s dismal employment figures gave sellers the catalyst they had been waiting for to wipe out support around US88.50c, and send the Australian dollar to three-year lows as it hurdled towards the US88c handle,” said a Market Analyst at FXCM.
The poor jobs data is likely to generate a lot of gloomy media headlines that could threaten the recent recovery in consumer confidence and spending and could lower confidence in the economy and further weaken the ‘Aussie’.
Current Australian Dollar Exchange (AUD) Rates
[table width=”100%” colwidth=”50|50|50|50|50″ colalign=”left|left|left|left|left”]
Currency, ,Currency,Rate ,
Australian Dollar,
,US Dollar,0.8784 ,
Australian Dollar,,British Pound,0.5376 ,
Australian Dollar,,Euro,0.6450 ,
Australian Dollar,,New Zealand Dollar,1.0571 ,
US Dollar,,Australian Dollar,1.1381 ,
Pound Sterling,,Australian Dollar,1.8602 ,
Euro,,Australian Dollar,1.5502 ,
[/table]
Comments are closed.