Strong Job Reports Push Australian Dollar Higher In the Forex Market
By Anatol Thomas
The Australian job reports changed the way forex market behaved in one day. With the strongest job reports since 2015, the Australian dollar enjoyed a rally for the entire day. The jobs report was much better than the expectations, which surprised the economists. While the expectation was that the country would add about 20,000 jobs, the job report showed that Australia gained 60,900 new job positions within a month. Such a rise was not experienced since October 2015.
The supporting fact about the jobs report is that a majority of the gain was experienced through full-time positions. Australia added 74,500 full-time positions, which has not happened in the last three decades. In the part-time division, Australia lost about 13,600 jobs. The unemployment rate was 5.9% as expected. The participation rate was expected to be around 64.6%, but it jumped to 64.8%, showing a stronger economy.
The value of the Australian government bonds increased greatly after the announcement of job reports. The data is considered to be hawkish according to market experts. The RBA could bring about new and supportive monetary policies. Previously, in April, the Reserve Bank of Australia commented that the current policy is expected to bring sustainable growth so as to reach the inflation target. In the May meeting, the new job reports could play an influential role, changing the approach of the RBA towards monetary policies. The Australian dollar gained 1.25% against the US dollar.
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