Full-time employment rose by 97,000 last month after falling by 20,100 in September.
So far this week, the Australian dollar has strengthened against the US dollar, gaining 0.08 percent and continuing its three-week rally, raising concerns about a strengthening US dollar. The Aussie dollar appears to be benefiting from recent greenback weakness, losing 0.23 percent against a pack of its major rivals.
The Reserve Bank of Australia recently released its notes saying that members are not yet willing to set negative interest rates and that any further action would involve expanding the bank’s bond-buying program. The notes also said that monetary and fiscal stimulus will be needed over the long term and that cash rates will not be raised for the next three years.
Particular attention was paid to the current low interest rates, which the board believes are affecting exchange rates and asset prices. This could prompt the bank to further reduce the level of interest rates, which currently stand at 0.1 percent. According to Bank Governor Phillip Lowe, if other central banks decide to take their cash rates into negative territory, the RBA would have to comply.
The coronavirus crisis appears to be under control in Australia. However, the state of Victoria recently decided to limit its border due to the increase in cases in South Australia. So far, 27,785 cases and 907 deaths have been reported on the island.
The Australian Bureau of Statistics reported on Wednesday that the wage price index rose to 1.4 percent (year-on-year) in the third quarter, after 1.8 percent in the previous month. The number was lower than expected, as analysts had predicted it would be 1.5 percent. On a monthly basis, it was 0.1 percent, also below analysts’ expectations of 0.2 percent and lower than the previous month’s reading of 0.2 percent.
Unemployment figures for October were lower than expected. The unemployment rate was 7 percent in October, up from 6.9 percent the previous month, but below analysts’ expectations of 7.2 percent. The change in employment was at 178,800 after a change of 29,500 in the previous month, which also beat analysts’ expectations.
Full-time employment rose by 97,000 last month after falling by 20,100 in September. Similarly, part-time employment rose by 81,800 after falling by 9,400 in September. The participation rate was 65.8 percent, up from 64.8 percent the previous month and beating analysts’ expectations of 64.7 percent.
Tensions with China, Australia’s main trading partner, are also rising. Reserve Bank of Australia Governor Phillip Lowe said in this context that there is a need to maintain strong trade relations with the Asian country. The government is also trying to get closer to Beijing, although not close enough, according to the Chinese. China said Australian officials should “take concrete steps to correct their mistakes”.