AUD Strengthens, What's Driving Its Rise?
The Australian Dollar (AUD) strengthened against the US Dollar (USD) on Thursday, extending its gains for the second consecutive day. This strengthening was driven by better-than-expected Australian employment data. The Australian Bureau of Statistics (ABS) released data showing a decline in the unemployment rate to 4.3% in October, better than market expectations of 4.4%. Furthermore, the number of jobs added 42.2,000, far exceeding the market forecast of 20,000.
The full-time employment sector also recorded positive results, with an increase of 55.3,000 in October, significantly better than the 6.5,000 increase in the previous month. Despite a decrease in part-time jobs of 13.1,000, the overall figure still reflects a healthy labor market and supports the strengthening of the AUD. The labor force participation rate remained stable at 67%, indicating that more people are actively seeking work.
In addition to solid employment data, the AUD also received support from a cautious statement regarding the Reserve Bank of Australia's (RBA) monetary policy. RBA Deputy Governor Andrew Hauser stated that monetary policy remains restrictive, although it is still under internal debate. This suggests that the RBA may maintain its tight policy stance for longer, which has provided positive sentiment for the AUD in global markets. (az)
Source: Newsmaker.id
