The Australian dollar continues to push higher, boosted by a recent batch of strong economic data.
Early Thursday, the local unit was trading at 95.30 US cents, up from 95.18 cents on Wednesday.
Better-than-expected data from the Australian Bureau of Statistics on Wednesday showed Australia’s trade deficit narrowed to $284 million in September, from $693 million in August.
On Monday, retail trade and capital city house price figures also came in strong while building approvals last week beat expectations.
The strong data along with the Reserve Bank’s decision to leave the cash rate on hold at 2.5 per cent, inline with market expectations, has boosted the Aussie dollar, ANZ senior currency dealer in Auckland Alex Sinton said.
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“Much like other central banks, it’s a bit of a wait-and-see, hold your breath-type scenario,” Sinton said.
“The growth wheels that are turning in some areas of the world are just starting to turn a little bit faster perhaps.”
Today’s job figures pointed to a softer market.
New figures released on Thursday showed the jobless rate remaining at 5.7 per cent after just 1100 people joined the workforce in October.
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“Labour market conditions are clearly soft,” Employment Minister Senator Eric Abetz said in a statement.
Reflecting this weakness, the labour force participation rate of those in work or actively seeking employment remained at 64.8 per cent, its lowest rate since October 2006.
“It is more imperative than ever that the coalition government’s economic plan is delivered to achieve stronger jobs growth right across the country,” he said.
The government has pledged a target of one million jobs over the next five years and two million jobs over the coming decade.
Senator Abetz was particularly concerned that the youth unemployment rate (for those aged between 15 to 24) increased by 0.3 percentage points to 13 per cent in October, the highest rate recorded since June 2002.
“Given the increase in unemployment, there is now even more pressure on Labor to discard its extreme ideology over the carbon tax to help create jobs,” he said.
