Unemployment in Australia, projected stability at 5.6%

This Thursday, April 20, starting at 10am Australia time, the data on the change in employment and the unemployment rate will be published. In GMT-3 time, it will be from 9pm.

The current unemployment rate stands at 5.6% as published by the Australian Bureau of Statistics. With the objective set on the recovery of growth, the Bank of the Republic of Australia (RBA) will seek through a new budget, to boost the economy towards maximum employment.

To achieve this, monetary policy is based on historically low interest rates of 0.1%, a bond purchase program and the stimulus to inflation between 2% and 3%. The current CPI stands at 1.1% according to the latest data reported.

In this sense, the new budget seeks to increase spending on infrastructure, care for the elderly and tax exemptions for homes and businesses.

The unemployment rate is expected to remain unchanged at 5.6%. Therefore, an impact on the AUDUSD is not expected. However, for the change in employment levels, a positive variation between 15K and 17K is expected, although it would represent a lower growth rate than the previous month.

Among the measures to achieve the goal of low unemployment, there is a change in the active work program, which will be replaced as of July 2022, by a new one called “New Model of Employment Services”. This program seeks to further digitize the employment services system, providing training and tools to those who require it. It will have an active job search monitoring and demonstration system.

However, the new program has been criticized for not having a larger budget and having a differential report to the work carried out by the employment agencies, which were critical for inserting the “most qualified” workers in the market.

The AUDUSD is currently trading at 0.7758. It is suggested to buy up to 0.7822 with TP at 0.7840. While sales are recommended up to 0.7775, with TP 0.7760.