On Thursday morning, the Australian Bureau of Statistics released the country’s labor market data for February, which came contrary to market expectations, as the economy lost jobs at the highest rate since December 2023, while the unemployment rate remained stable at the previous level.
According to the data, Australia’s economy lost approximately 52.8 thousand jobs, which contradicts market expectations that anticipated an addition of about 30.8 thousand jobs only. The previous reading for January had shown an increase of around 44.0 thousand jobs, which was negatively revised down to 30.5 thousand jobs.
On the other hand, the unemployment rate data in Australia met expectations, as it recorded an increase to 4.1% during February, the same percentage that the index grew in January.
The change in employment rate in Australia is considered one of the indicators measuring consumer spending within the country, as it reflects the overall performance of economic activity in Australia. An increase in the reading above expectations indicates a positive impact on the Australian dollar, while a decrease below market expectations suggests potential weakness of the Australian dollar. In this case, the impact is considered mixed and neutral on the movement of the Australian dollar.
