-Glenn Stevens, RBA Governor
The Aussie has been appreciating against the greenback since the beginning of February, with the pair moving back into the "uncomfortably high" level. Moreover, South-Pacific currencies including the Aussie and Kiwi have been strongly bullish last days, as comments from central banks pushed them higher. The rally in the Aussie can end this week, as the main highlight will be Thursday's unemployment data, as labour market remains one of the key concerns for the RBA.
The jobless rate is projected to remain unchanged at 6.0%, however, the economy is likely to add less jobs than it managed in February. Last week, RBA's Stevens claimed that the main reason for deteriorating labour market is a lack of workers, not jobs. His comments are supported by the fact the number of new entrants to the labour force after the graduation each year exceeds the number of retiring, while just ten years ago these figures were almost equal.
The solution can be rapid growth, with a longer participation in the labour force. Stevens also warned that unemployment can climb further. Despite high level of indicator, there are 4 million more jobs than there were 20 years ago, while unemployment rate is slightly more than half what it was at the highest level back in 1990s.
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