An unexpected drop in joblessness in Australia last month boosted the value of the nation's currency against all 16 of its counterpart currencies, Bloomberg reports.
Australia's unemployment sank to its lowest level in one year as the Aussie also climbed against two safe-haven monetary units – the U.S. dollar and the Japanese yen. The dollar of Australia was virtually indifferent to Chinese export and import data being underwhelming as the Asian nation is the top destination for Australian exports.
"The key surprise from today's employment report was the surprisingly large drop in the unemployment rate," states a Thursday research note penned by head of Group-of-10 foreign-exchange strategy for Asia Todd Elmer with Citigroup in Singapore, according to Bloomberg. "Still, we doubt that the reading will be sufficient to change the trend in AUD since domestic variables are very much second-tier drivers of AUD in relation to global factors."
After registering at 5.2 percent in March, the jobless rate fell to 4.9 in April, Australia's statistics bureau noted. That is the lowest since April 2011.
The Reserve Bank of Australia is less likely to enact an interest rate reduction as a result of the jobless data, according to The Australian.
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