On Thursday, the Australia Statistics Institution published the employment data change which shows the addition of the 115.2k new jobs in may. That number is more than the expectation of 30k. 

Furthermore, that result rose from the previous month which was in -30.7k . The significant rise of the employment data in that country is supported by the jobs growth. 

It is especially for the full time employment category which increases from 33.8k to become 97.5k. Meanwhile, the Part Time job category also increases from -64.4k to become 17.7k.

The Unemployment Rate is Decreasing 

In line with the positive result of the employment change data, the unemployment rate is drastically decreasing. It is from 5.5 percent to become 5.1%. That decline is better than the stable expectation. 

That stable expectation is in the level of 5.5% and also 0.2% lower than the March 2020 period before the pandemic started. This condition shows that the employment sector in Australia is good.

It is coming back to the pre-pandemic era so that it can have the positive effect for the economy growth in the second quarter. Besides that, this country also has another progress to see. 

The RBA Intervention to Push the Economy

The better fundamental data in Australia lately is closely related to the RBA intervention which has been giving a lot of stimulus. The aim is for sure to push the economy condition. 

In the June policy meeting minutes, RBA stated that Australia is now changing from the recovery to the expansions level. This condition will still be continued until the end of the year.

Elsewhere ,the employment data release in Australia this morning was quite satisfying. That is why; it has the positive effect to the Australian dollar versus the USD. That can be seen in the market. 

When this news was released, the pair of AUD/USD was around 0.7628. That was 0.3 percent stronger than the daily open price. However, generally the AUD is still pressured in the low levelm

The Fed’s Decision about the Rate Hike 

After the announcement from fomc, AUD is still under the pressure. It is because the Fed’s decision which is projecting the rate hike faster than the expectation is making the USD is higher. 

The cause is that the US dollar major rival such as the AUD is experiencing the selling action and significant decline. The monetary policy announced by the Fed yesterday morning gave a sign. 

That organization is boosting the interest rate increase projection. Before it is planned to be released in 2024, but maybe it is going to be announced a year earlier or in 2023.

This step is taken to balance the rising inflation happened lately. However, the United States Central Bank is still maintaining the obligation purchase. The value is $120 million every month. 

Rate Hike may be Doubled in 2023

In its newest projection, The Fed is indication to make the rate hike is two times bigger and that may be happened in 2023. Jerome Powell as the leader gave his statement about that. 

He said that inflation can rise faster than the expectation. Furthermore, the United Stated inflation project this year has been increased to become 3.4 percent or 100% higher than the March outlook. 

In line with the economy normalization, the big and fast demand change may trigger so many problems related to the stock. This condition will trigger the possibility of a higher and more permanent inflation. 

The Fed’s announcement about their policy this time is highlighted by several parties where they have the diverse comments. Some of them are not surprised by the ddcioson made because it is based on the fact.