In its previous monetary report, the Reserve Bank of Australia stated that the Australian economy is suffering from the ongoing trade disputes between the US and China and also from some seasonal weather patterns, which were disrupting the production in the country. Seemingly the ramifications for the national labour market from the international stagnation of free trade are starting to take shape, as the seasonally adjusted unemployment rate surprisingly rose to 5.2% in the month of April.
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The Australian Bureau of statistics reported concerning indications of the formation of a new drift in labour performance. The seasonally adjusted unemployment rate is now on the rise and noticeably outpacing the recent trend of increasing employment, which could be potentially perceived as an early signal of deteriorating labour conditions.
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Even though it is too early to give any grand assessment of these relatively recent developments, a potential rise in the seasonally adjusted unemployment in May could compel investors to weigh in on a likely slump in the economic growth rate of Australia.
Moreover, the RBA expectedly lowered the interest rate to 1.25% from 1.50% during its scheduled meeting last week. The decision of the central bank to lower the rate to implement a more accommodative monetary policy is indicative of this slump in growth, and if Thursday's report does indeed show an increase in the unemployment rate, this is going to be yet another symptom of the deterioration of the economic situation.
Given that the AUDUSD pair is currently trading around a significant resistance level, the aftermath of Thursday's report could potentially ignite additional volatility outbursts for the Aussie.
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