Australian dollar soars to 15-month high amid job news

| November 12, 2009 | 0 Comments

Australia’s economy, which is one of the few not to have fallen into recession like its counterparts throughout the world, created more jobs than expected in October, sending the Australian dollar to a 15-month high.

Employment within the economy rose 24,500 during the month - the second month of growth.

According to Rob Henderson, head of market economics at National Australia Bank, “One month of this data you can take with a grain of salt, but two months in a row of positive numbers is starting to look like a trend.”

News of the growth led investors to believe that the Reserve Bank of Australia would raise interest rates for a third consecutive month. Australia was the first G20 country to raise rates amid the global economic downturn.

Rates currently stand at 3.5%.

Meanwhile, Australia’s unemployment rate saw a slight increase to 5.8%, but the rate has been fairly steady since March.

Felicity Emmett, senior economist at RBS, described the numbers as “very strong” and added: “Employment is up over 60,000 in just two months and the jobless rate might peak below 6%… that’s amazing.”

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