Release Explanation: This report measure the percent of unemployed persons in the labor force. The unemployment rate can be a leading indicator of the overall health of the labor market. Higher unemployment leads to less income for Australian workers who, in turn, may reduce consumption. As consumer spending contributes to a majority of Australia’s GDP, developments in the labor market directly affect prospects for Australian growth.
Trade Desk Thoughts: The unemployment rate in Australia increased by 0.4 percent to 5.2 percent in February which is slightly higher than analysts’ forecasts of an increase to 5.0 percent. The unemployment rate increased by 47.1K to 590,500. The number of persons looking for full time work increased to 426,000 while those looking for part time employment increased to 164,500.
Forex Technical Reaction: The aussie was on a downward trajectory immediately before this release. The pair had easily slid below the neutral pivot point, but has bounced back with vigor as the employment data was released.