Australian dollar falls below 68 cents as unemployment rises

restaurant kitchen

In short

  1. Unemployment in Australia rose in October
  2. There is a slightly higher chance of an interest rate cut
  3. As a result, the Australian dollar fell against most major currencies

AUD to USD exchange rates

TimeOpenLowHigh
Today0.6895
In the last week0.69110.6899
In the last month0.67270.6926

For the first 3 day of this week, the Australian dollar barely moved. It sat around 68 and a half cents against the US dollar.

Then, at 11:30 today, it fell more than 0.5% to under 69 cents for the first time in almost a month. Why?

Well, once a month the Australian Bureau of Statistics releases labour force data which shows:

  • The Unemployment Rate - how many people looking for work are out of a job
  • How many jobs were created or lost during the month. It includes information if those jobs were full time or part time
  • The Participation Rate - how many people are activity looking to work

These figures can impact how official interest rates move and interest rate moves has a big influence over the Australian dollar.

So in this case, the data showed that no jobs were created during the month and unemployment increased. This indicates that the economy is not strong.

As a result, the Reserve Bank of Australia are more likely to cut interest rates to stimulate the economy.