The value of the Australian dollar (AUD) took a hit in today’s early trading following reports from the Australian Bureau of Statistics that employment saw sharp contraction in August. The Employment Change figure was forecast to see an expansion of roughly 10,700 jobs; the actual figure shocked even market pessimists.
A surprise contraction of nearly 9,700 jobs in August has generated wide concern that the Aussie economy is facing an impending crisis, especially considering last month’s 4,100 job contraction. The unemployment rate also increased from 5.1% to 5.3% this month. The AUD is losing value and could enter a longer-term downtrend if things are not changed soon.
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