09 December 2010

Aussie Gains On High Employment Statistics

The Australian dollar made gains yesterday following the release of statistics which show the largest rise in employment since January.

The Australian Bureau of Statistics reported on Thursday that the country’s employment reached 54,600 in November, exceeding the expected increase of 20,000 and reducing the national unemployment rate by a further 0.2 percent.

Following the release of the data at 1130 AEDT, the Australian dollar increased half a US cent trading at 98.40 US cents, up from Wednesday’s close of 97.89 cents.

Adam Carr, senior economist for ICAP said that the positive influence of the employment figures on the economy was clear and may prompt the Reserve Bank of Australia (RBA) to raise the cash rate in next year’s first quarter.

"The RBA gave a fairly neutral signal to us when they met (on Tuesday) and this data today shows why the RBA's pause isn't going to be that long," Mr Carr said.

"The chances of them being on hold until June next year is, I think, effectively zero."

It is estimated that more than 50,000 people joined the workforce in October, creating the second largest employment rise in Australia since 2006.

Analysts hope that these latest statistics signal the continuing rejuvenation of the Australian economy.

No comments: