The Australian Job Market Steadies, Further Growth Likely
The Australian Unemployment rate is the percentage of the total work force in Australia that is unemployed and actively seeking employment during the previous month.
What opened the core that drove the Australian labour market towards a full recovery pattern is strongly tied to productivity gains, strong institutions, and robust economic fundamentals.
Also, the Reserve Bank of Australia’s monetary policy through ultra-low interest rates and the massive quantitative easing has aided to reshape the economic landscape plagued by the pandemic hit.
According to Westpac senior economist, Matthew Hassan,
“The RBA will be patient before lifting the cash rate and anticipate a change in late 2022 or early 2023. They want to see a sustained improvement in wages growth and inflation before it lifts the cash rate as moving too early could derail the economic recovery.”
Currently, the biggest constraint lies in the rising cases of the omicron virus hitting hard and disrupting the work flow. The positive is that, wide-scale administration of vaccines is aiding in minimizing the spread.
However, the Australian econometric model projected the unemployment rate to decline to 4.0 percent in 2022 and to trend around 3.8 percent in 2023. The economy is currently sucked by inflation spike trending around 3 percentage which was influenced by rising oil prices and supply chain disruptions.
Regardless, traders should brace themselves up for a period of high volatility as the Unemployment Rate report often has great impact on the FOREX market. A decrease in Unemployment Rate will usually strengthen the AUD (Australian Dollar), while increase in Unemployment Rate will usually weaken the AUD (Australian Dollar).
Traders should always be aware that volatile markets provide great opportunities for making profits, as the increase in volatility can cause market swings for traders to capitalize on.
In response to the news release, trade the forex market with the following trading instruments on ACT Brokers platform, as the pair are mostly affected by the data release; AUDUSD, AUDCAD, AUDCHF, AUDJPY, AUDNZD, etc.
Time Schedule for the next Unemployment Rate Report:
Date: Thursday. January, 2022
Time: 1:30 am (GMT + 1).
Author: Amogo Solomon
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