The Australian unemployment rate has risen dramatically again – jumping 0.3 per cent higher from 7.1 per cent in May to 7.4 per cent in June – affecting 992,300 workers, according to the Australian Bureau of Statistics.

This fluctuation indicates that the fallout from the Covid-19 crisis is not yet over, with a surge in infections in the state of Victoria, in southeast Australia, further threatening the employment outlook, potentially prompting a need for more fiscal support to eradicate such a hit.

A worse situation could also happen as the unemployment rate is expected to touch eight per cent in the labour market in the last quarter​ of 2020 due to the continuity of the effects of the pandemic that could further stifle the nation’s economic growth.

Subsequently, investors could interpret Australia as a weakening economy and seek opportunities elsewhere, causing the Australian dollar to depreciate and lose its value when compared to the value of the US dollar.

Since June, the AUD/USD price (the value of the Australian dollar compared to the greenback) has been moving in a really tight range between 0.68 and 0.70, with the current price sitting at around 0.69.

Based on this premise, there is a good opportunity to have a short position on the AUD/USD as the Australian dollar looks bearish.

For more information on how to trade AUD/USD and other products, contact Golden FX Link Capital.