Australia Labour Market Update: December 2025 Employment

Source: Dukascopy Bank SA
Australia's labour market showed modest improvements. Employment rose to 14,686,100 in trend terms, with full-time jobs increasing to 10,108,000 and part-time to 4,578,100, keeping the employment-to-population ratio steady at 64.0%. The unemployment rate declined to 4.2%, while underemployment held at 5.9%. Participation remained stable at 66.8%, and total monthly hours worked increased to 1,997 million. Seasonally adjusted data showed slightly stronger gains, with unemployment at 4.1%, underemployment at 5.7%, and hours worked at 2,001 million. State-level results varied, with Western Australia and Northern Territory showing higher employment-to-population ratios, while underemployment was highest in Tasmania.





AUD/USD is trading near 0.6804, showing a clear recovery after 2024-25 volatility. The weekly chart shows a bullish structure with a strong ascending support trendline holding since early 2025, signaling higher lows. Price is above the 24-week SMA, which is curling upward, suggesting short-term bullish momentum, while testing the 100-week SMA— a decisive close above it would confirm a long-term buy signal. Immediate resistance sits at 0.6904, with a breakout targeting the psychological 0.7000 level. RSI (24) at 59.85 supports continued upside before overbought risk.

Fundamentally, AUD benefits from Australia's commodity exports, particularly gold. Gold is in a structural bull market, with targets toward 5400.00. boosting AUD via a strong positive correlation. Rising gold and other commodity prices provide a commodity floor for the AUD, while global anti-fiat sentiment supports capital flows into hard assets, putting upward pressure on the currency versus the USD.

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