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 0.1 percent to 4.8 percent in January which is slightly higher than analysts’ forecasts of an increase to 4.7 percent. The unemployment rate increased by 36,800 to 540,200. The number of persons looking for full time work increased to 381,300 while those looking for part time employment increased to 151,800.
Forex Technical Reaction: The aussie had quite a jump from the employment related releases, breezing past the neutral pivot point which had held the pair lower since just past the new trading day start.