Australian employment data came in light yesterday initially not making a dent on the Australian Dollar (AUD), US Dollar (USD) cross. However, with risk sentiment poor and punters buying up the greenback we have seen the cross post 0.6690 a May 2020 low. The Unemployment rate unexpectedly clicked higher to 3.5% from 3.4% in August and the workforce added 33,500 jobs to the economy as predicted. The RBA might see these numbers as a result of tighter monetary policy doing its job. Of note the participation rate rose to 66.6% just 0.2% below the record high set in June and the pre-covid level. The tight labour market however suggests the RBA will keep rising interest rates over the coming months but at a slower pace we suspect. Looking ahead we have the FOMC statement and rate release next week with the Fed widely predicted to hike to 3.25% from 2.5%.
The current interbank midrate is: AUDUSD 0.6700
The interbank range this week has been: AUDUSD 0.6683- 0.6915