Worsen Situation in Australia: Unemployment Rate Rises to an unexpected level of 5.7%

Australia's economy was shaken today with the news of unemployment rate going to an unexpected level, according to the reports. The Australia Bureau of Statistics reported reports show that Australia lost more jobs than it was expected in March, causing the unemployment rate to soar. Statistic shows that the Australia's labour force lost 34.7k, boosting the unemployment rate to 5.7% from 5.2% last month. With the release of this data, Ms Gillard said in a statement that “Australia is battling a global recession that is resulting in falling growth and rising unemployment right around the world.'' In fact she is expected this rate can go up to 7% later in the year.

Looking at the online forex figures, AUD/USD was weakened today by 0.70% after the release of government report showing alarming figure of the unemployment rate going to a five-year high. It can be observed that the AUD fell for the fifth day in a row, according to the forex broker analysis this fall is the longest negative period since January 2009. The charts continue to show a weak signal, the support can be seen around 0.7037. Analyst believe breaking of support can pave way for 0.6900 (cluster EMA’s ). My forex broker Finexo recommends to look for entering long position only at around .6875 to 6910 levels for achieving a target of 100 pips.