Homepage » AUD » Full-Time Employment Losses Send AUD EUR Lower

Full-Time Employment Losses Send AUD EUR Lower

Euro Exchange Rates

The Australian Dollar has dropped by -0.7% against the Euro today following news that national full-time employment plunged in January.

While the Australian unemployment rate did fall from 5.8% to 5.7%, participation also dropped and more unstable part-time employment also rose.

Consumer inflation expectations in February also proved concerning, dropping from4.3% to 4.1%.

Offering his take on the data was National Australia Bank (NAB) Economist Tapas Strickland;

‘Much will be made of the full/part-time employment split in this release. However, large movements tend to reverse in the following month, and the split itself is not entirely meaningful given the shedding of full-time jobs in the mining and manufacturing regions, whilst the rise of part-time employment is a global phenomenon. Worryingly, trend employment growth in the non-mining states still shows signs of softness’.

Eurozone jobs data proved more supportive with the French Q4 unemployment rate dropping. Separate data also detailed an expansion in the Italian trade surplus in December.

Outside of direct data, German Finance Minister Wolfgang Schauble has further stoked Euro demand by speaking to his US counterpart. A spokeswoman reported that;

‘both ministers reaffirmed their keen interest in constructive cooperation’.

Outside of any unexpected US influences (Donald Trump primarily), the Australian Dollar is next expected to be moved by the Reserve Bank of Australia (RBA) meeting minutes.

The minutes could trigger an Australian Dollar rally if they show that the RBA is not thinking of following recent International Monetary Fund advice to cut rates.

The last big Eurozone data of the week is December’s construction output figure, which previously showed no movement at 0%.

Recent AUD EUR Interbank Exchange Rates

At the time of writing, the Australian Dollar Euro (AUD EUR) exchange rate was trending in the region of 0.72 and the Euro Australian Dollar (EUR AUD) exchange rate was trending in the region of 1.38.