"The unemployment rate edged higher. This is likely to persist in the near term, as the economy adjusts to lower levels of mining investment."
- Glenn Stevens, Reserve Bank of Australia (RBA) Governor
Australian Dollar fell to 0.9465, hitting Tuesday's low after disappointing data from the Oz labour market. Australia's Dollar fell almost 0.5% versus both the U.S. Dollar and single currency, almost eroding Monday's gains. Australian Bureau of Statistics said that despite a pickup in business confidence, Australian companies showed their reluctance to hire more staff, posing significant challenges for the RBA, which is trying to boost job opportunities in other sectors amid waning investment from mining sector. The overall unemployment rate remained unchanged at 5.7% in October, from a revised 5.7% recorded a month earlier, widely meeting analysts' predictions. The main disappointment came from the number of full-time jobs, where indicators plunged 27,900, the most since June 2012. Moreover, the total number of people employed advances just by 1,100, significantly below estimates for a 10,000 gain. Another important indicator that represents situation in the labour market is participation rate that held steady at 64.8%. It means the proportion of Australian active in the labour market is standing at the lowest level since October 2006.
Whereas traders unwound bets that Australian central bank's next interest rate move would be an increase, spurred by a rebound in consumer and business sentiment, latest data from the labour market are raising concerns the easing cycle may not be over yet.
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