AUD/USD Rally Recovers after Australian Unemployment Data Disappoints

17 March 2017 by News Desk   |   SHARE  

The markets were mixed this week – US dollar investors were given a much anticipated Federal Reserve interest rate hike, but felt disappointed by the indication that increments will be smaller and fewer than forecast. As a result, the greenback slipped by a cent versus both the euro and the pound and speculation heightened on how likely further rate hikes in 2017 actually are. The Australian dollar also fared well against the buck, with the AUD/USD exchange rate climbing by 2% to hit a three-week high of 0.77.

However, the rally felt some resistance after the release of unfavourable Australian labour market data. The Australian unemployment rate jumped from 5.7% to 5.9% in February, marking a 14-month high. The number of people employed fell by -6,400 in February instead of hitting the +16.0k forecast.

Minister for education and training Simon Birmingham commented: ‘We are acutely aware that there are too many Australians who remain unemployed, without the security and dignity of work, and that significant economic challenges lie ahead. That’s why we’re committed to creating the right policy frameworks that will facilitate stronger jobs growth, so that Australians can take advantage of new, emerging job opportunities.’

Meanwhile, the price of iron ore has been pushing higher as demand from China took a notable upswing. If the rally continues it’s likely the Australian dollar will be offered support to strengthen further.

Disclaimer: This economic update is provided by FC Exchange a Global Reach Group Company, industry leaders in foreign exchange. Authorised affiliates are permitted to reuse content.

Learn more about the Australian Dollar – Contact FC Exchange: Get A Quote

Want to live and work Down Under? Click here for expert help: Skilled Migration to Australia

Want to get a job Down Under? Click here for expert help: How to Get a Job in Australia

Click here for expert help with travel visas: Travel Visas to Australia

Click here for tourist information about Australia: Visit Australia