|Aussie hits a new low on weak jobs data
Australia's unemployment rate held steady at 5.8 percent in December but the economy shed 22,600 jobs, data show. The Australian dollar tumbled to a three-year low on the news.
While the headline rate remained the same the Australian Bureau of Statistics said seasonally adjusted unemployment increased, with the loss of 31,600 full-time jobs and the creation of just 9,000 part-time positions.
The rate was in line with forecasts but the “Aussie'' dollar sank to 88.05 US cents –
its lowest since August 2010 – from 89.03 cents on Wednesday.
Central bank governor Glenn told lawmakers late last year that an exchange rate above 90 US cents was not sustainable in the long-term and 85 cents was probably closer to its true value.
The Aussie traded at or above greenback parity for several years, hitting a high of 110.81 US cents in July 2011, and its drop will be welcome news for the Reserve Bank.
Its prolonged bullish run weighed on trade-exposed sectors of the economy, particularly manufacturing.—AFP