PT Solid Gold Berjangka | Australian Unemployment Rises to Two-Year High, Currency Drops

01:43 15 February in Economy, PT SGB, SOLID GOLD BERJANGKA | SOLID GROUP

Unemployment Ekonomi Australia Uneployment Australia Unemployment Rate PT SGB Solid Group SG Berjangka Solid Gold Berjangka

Solid Gold Berjangka | This news from Bloomberg outlines the current state of the Australian labor market and its potential impact on the country’s monetary policy:

  • Hiring in Australia increased slightly at the beginning of the year, with 500 new roles added in January. This growth was primarily driven by full-time positions, contrary to expectations of a much larger gain of 25,000 roles.
  • However, despite the uptick in hiring, unemployment in Australia rose to a two-year high of 4.1%. This suggests a cooling labor market, prompting speculation about a potential interest-rate cut.
  • The Australian dollar depreciated following the release of this data, as traders adjusted their bets on the timing of the next interest-rate cut. Previously, the market had anticipated a rate cut in November, but now there’s speculation that it could happen as early as September.
  • The Reserve Bank of Australia (RBA) opted to maintain its key rate at 4.35% during its latest meeting, citing the need to monitor economic conditions closely. However, the RBA acknowledged the possibility of further rate hikes in the future.
  • The upcoming release of monthly inflation figures for January will play a crucial role in shaping the RBA’s policy decisions at its next meeting on March 18-19.
  • Financial markets are increasingly anticipating a downward adjustment in interest rates, reflecting concerns about the impact of rising unemployment on the broader economy.
  • The RBA had previously raised interest rates by 4.25 percentage points between May 2022 and November 2023 to combat soaring consumer prices, indicating a willingness to take decisive action to manage inflationary pressures.

Overall, the combination of weaker-than-expected job figures and the likelihood of softer inflation data suggests that the RBA may be inclined to ease its monetary policy stance in the near term.