Employment among other factors is paramount in tracking the growth pattern of every economy.
The Australian economy has remained resilient in the pandemic phase despite the global sharp growth decline. Since the recession hit, the Australian Dollar has maintained ground, outperforming many currencies by smashing a series of multi-month highs. On the AUDUSD pair, it gained momentum from the year 2020 low of 0.55085 price point and sustained a long-term bullish pattern to the upside with massive gains. The pair ascended to a multi-month high of 0.80064 before a slight downside correction. As at the time of writing, it is floating between the 0.73592 and 0.75311 price levels.
Currently, its unemployment rate climbed 4.6% from the previous 4.5% level. From market forecast, it is expected to rise further towards the 4.8% mark. Comparatively, the economy is not underperforming and its work force is rated high as it stood strong among the nations whose job market thrive in the midst of the pandemic drift.
According to the International Monetary Fund World Economic Ranking, Australia is ranked among the top 10 global economies in terms of GDP per capita. As of 2021, its nominal GDP is $1.6 trillion and its GDP per Capita is $62,618.59. There is strong speculation that the economy will keep flourishing, though global supply chain disruption and high inflation are constraining the narrative.
Another positive is that, its key industry share output is indicating industry expansion, which include Mining up 11.5%, Manufacturing up 6.0%, health and education 13.2 %, Financial sector up 8.0% and the construction industry 7.4%.
Regardless, traders should brace themselves up for a period of high volatility as the Unemployment report often have great impact on the FOREX market. A decrease in Unemployment Rate will usually strengthen the AUD (Australian Dollar), while increase in the 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.
The currency pairs with the AUD (Australian dollar) are mostly affected by the data release. They include; AUDUSD, AUDCAD, AUDCHF, AUDJPY, AUDNZD, etc. you can trade these pairs with ACT brokers; Best Forex Broker (https://actmarkets.com) with the best spread and trade execution.
Time Schedule for the next AUD Unemployment Rate Report:
Date: Thursday. 11th November, 2021.
Time: 1:30 am (GM + 1).
Author: Solomon Amogo
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