The Australian Dollar has soared to a five-week after the Oceanic nation’s jobs data smashed economist predictions.
The data took everyone by surprise as February saw a massive surge in employment. The number of people in work surged by 71,500 compared to the previous month causing the country’s unemployment level to hold steady at 5.4%. The rise is the biggest gain since September 2004 and is nine times higher than the average seen in the previous six months.
As a result of the employment rise economists have all but abandoned hopes of any further interest rates this year, with a number suggesting that the next change could instead be an interest rate rise.
‘The data all but eliminates the case for a rate cut by the RBA (Reserve Bank of Australia) in the near term,’ Forex.com research analyst Chris Tedder said.
‘The Bank has already expressed its intention to remain on the sidelines until it assesses the impact of prior rate cuts.
‘The only thing that can tip the scales in favour of another rate cut next quarter would be a significant deterioration in domestic data, which is made even more unlikely by today’s employment report.’
Such a move all depends on whether the data will be revised downwards as several economists made clear that they believe the data could be wrong and was likely to be revised downwards next month. They say that 75% of the jobs created were part-time and the numbers as not as good as they seem.
Current AUD Exchange Rates
The Australian Dollar to Euro exchange rate is trading at 0.7986
The Australian Dollar to US Dollar (AUD/USD) exchange rate is trading at 1.0344
The Australian Dollar to Pound Sterling (AUD/GBP) exchange rate is trading at 0.6929
The Australian Dollar to New Zealand Dollar (AUD/NZD) exchange rate is trading at 1.2644
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