Australia: Unemployment to be Highest in Almost 3 Years

Wednesday, November 7th, the highest unemployment rate in almost 3 years is expected to be released by Australia’s Bureau of Statistics. 5.5% is the figure expected by economist. September’s figure (5.4%) was the highest since the fall of 2010.

Monday, interest rates were expected to be dropped by the Reserve Bank of Australia. Twenty out of twenty-seven economists questioned by Bloomberg thought that rates would fall 25 more bp, hitting 3.00% (A level not seen in three years). It is expected that the Australian Central Bank will continue to lower the interest rate.

7:30pm EST Wednesday evening the Employment Change and Unemployment Rate will be announced.

The RBA (Reserve Bank of Australia) released this statement: “With prices data slightly higher than expected and recent information on the world economy slightly more positive, the board judged that the stance of monetary policy was appropriate for the time being,”. It appears that the Australian economic condition is not doing so bad after all. The housing market is picking up (up to 7.8% last month) but the labor market is falling down.

The Aussie against the USD did break 1.04 today. If it continues to gain momentum, the AUD could finish up this quarter bullish. I think a lot of the outcome depends on whether or not interest rates continue to be lowered this year.

The United States Presidential election is today. Tomorrow we will release an article with thoughts on the outcome.

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  • Michael, yes sir! Thank you for catching that. I just changed it. $1.04 is correct.

  • Michael M

    I think you mean $1.04 !