Australia’s unemployment rate has fallen to 6.8 per cent despite more than 42,000 residents of Victoria losing their jobs in August alone.
New data from the Australian Bureau of Statistics (ABS) showed that 111,000 Australians found new jobs or resumed employment in the past month.
Despite the good news nationally, Victoria has continued to suffer as a result of Covid-19 restrictions.
The University of Melbourne estimates that without financial aid programmes from the government, such as “JobKeeper” – which maintains a formal link of employment – the nation’s jobless rate could be as high as 11.7 per cent.
Australia’s economy has slipped into recession after June quarterly data revealed that the nation’s gross domestic product (GDP) shrunk by seven per cent. Data released by the ABS also shows that from April to June Australia’s GDP suffered its biggest drop since records began in 1959.
The price of AUD/USD – the Australian dollar compared with the greenback – was 0.72100 as of Tuesday.
From a technical aspect, AUD/USD has a strong resistance level at 0.75900, with the first support level at around 0.72000 and the second at 0.70900.
Based on this data, AUD/USD should be trading at between 0.70900 and 0.75100 (0.75100 held since June 2018) in a box market, which means investors can buy or sell AUD/USD at points near the support and resistance levels.
Investors should also trade with a stop loss function to minimise risk.