Aussie dollar affected after disappointing employment report

unemployed-man-with-signAfter the January jobs losses of 7,900 – full time jobs, unemployment has risen to 6 per cent this month causing the Australian dollar to tumble fuelling doubts about whether the central bank will cut interest rates.

Australia’s unemployment rate unexpectedly rose to 6 percent in January, from 5.8 percent the previous month, according to the statistics bureau. The Reserve Bank of Australia, which left interest rates unchanged at a record low this month, said in minutes of its Feb. 2 policy meeting released Tuesday that it will monitor whether strong jobs growth is sustained.

In an MSN news report chief currency strategist Masafumi Yamamoto said “The employment data falling below forecast prompted some short-term players to take profits,” said Masafumi Yamamoto, chief currency strategist in Tokyo at Mizuho Securities Co. “The data raised questions about the recent optimism about the country’s good labor market and weighed on the currency. But it’s too early to say whether this will prompt the RBA to consider cutting rates.”

To read the report in full click here.