Australian Unemployment comes out in Red

Australian Unemployment comes out in Red
Australian Unemployment comes out in Red

The number of people employed during the past month increased to a considerable extent, where more than 10,000 + jobs were created by the economy. However, the unemployment rate in the country rose to 5.7% from its previous level of 5.6% that created another concern over the economy’s growth. The investors instantly started selling the Australian dollar against the greenback after the pair made a top near the 0.9300 level after Bernanke’s speech and the unemployment data release. The pair lost around 200 points the whole day that made it enter the bearish zone again, as the investors are concerned about the struggling of the economy despite lowering the interest rates by the RBA.

Unemployment Claims Surged for the U.S.

The number of people claiming for their unemployment benefits increased by 16,000 for the past week to 360,000 up from the previous level of 344,000. The traders made the most of the situation and continued to short the U.S dollar against the majors. One thing to note here is that it took around 2 weeks for the Eur/Usd and Gbp/Usd to plunge sharply down the hill and make new fresh lows, and it took only 2 days for them to recover their losses and get back in the bullish area.

A Healthy U.S Federal Budget

The Federal Budget Balance of the United States came out to be in green where it beat the expected figure of 42.1 billion by the actual 116.5 billion, where the federal government’s income got much bigger than its expenditure. Around 45% decline in the spending during the previous month was witnessed where the government’s income increased as the tax collection in the economy got better.

Upcoming Important Indicators

Today’s key economic indicators to watch would include the Home Loans of Australia, where investors would be eying on how effective the interest rate cut is working for the economy and how consumer spending power is being affected.

Apart from that, the Eurozone’s industrial production data is due today in the European session, where better than expected results could take the Eur/Usd pair further up. However, the Purchasing power index and the Preliminary UoM Consumer Sentiment for the United States are due in the U.S session, which almost always drive the market sharply as volatility is seen during and after this data release. If the consumer sentiment tops its 6-years high, then USD could gain and the majors may come down as quickly as they rose yesterday.