The Australian dollar gained against its U.S. counterpart and rose versus the euro after the government reported that the number of people employed in Australia increased more than expected.
The employers added 33,700 (0.3%) to 11,025,500 jobs in April. This report sparked the speculations that the Reserve Bank of Australia will continue to increase the interest rates on order to keep the inflation in check. The central bank has raised the benchmark rate six times since October and may increase its benchmark rate by 54 basis points over the next 12 months, as some economists say.
The growing number of employed people shows that Australia hadn’t met such difficulties to its economy like some other developed countries. Philip Lowe, the Assistant Governor at the RBA said: “A major challenge will be to expand the supply side of the economy so that demand can grow solidly without adding to inflation.”
AUD/USD rose to 0.8990 as of 17:10 GMT today from its opening price of 0.8932. EUR/AUD dropped to about 1.3982 from the opening level of 1.4115.
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