Aussie Unemployment Rate big beat supports AUD/USD

Australia’s November labour force survey has been released as follows:

• Australian Unemployment Rate Nov: 4.6% (exp 5.0%; prev 5.2%) .
• Employment Change Nov: 366.1K (exp 200.0K; prev -46.3K) .
• Participation Rate Nov: 66.1% (exp 65.5%; prev 64.7%).

AUD/USD reaction

Prior to the data release, the price was undergoing a post-Fed-volatility correction to the downside. However, the data is positive for an otherwise dubious bid in the Aussie. 

The sentiment prior to the data was that a solid post-lockdown momentum through October, as indicated by the lift in payrolls, suggested a robust gain for employment.

The Reserve Bank of Australia sees the economy as likely to return to its pre-Delta path in the first half of 2022, but there will not be any rate rises next year which leaves the divergence between the Federal Reserve and the RBA a negative factor for AUD in the medium term. 

About the Unemployment Rate

The Unemployment Rate release by the Australian Bureau of Statistics is the number of unemployed workers divided by the total civilian labor force. If the rate hikes, indicates a lack of expansion within the Australian labor market. As a result, a rise leads to weaken the Australian economy. A decrease of the figure is seen as positive (or bullish) for the AUD, while an increase is seen as negative (or bearish).