Aussie dollar falls below US$0.63

Daily Currency Update

The Australian dollar is slightly weaker this morning when valued against the Greenback currently trading at 0.6250 at time of writing. The AUD/USD pair remained depressed during the American session below the 0.6300 barrier as a stronger US dollar (USD) and disappointing employment data from Australia continued to weigh. Australia's unemployment rate remained steady at 4.1 per cent in February, as labour force participation declined. According to the Australian Bureau of Statistics (ABS), 52,800 jobs were lost from the economy, well below forecasts of a 30,000 increase in employment. The drop in employment came as fewer people were in work or looking for a job, with the participation rate falling to 66.8 per cent, from a record high of 67.3 per cent in January. The ABS attributed part of the fall in employment to fewer older workers returning to work in February, with employment among older age groups lower than in the same month in 2024. Looking ahead this week and today we will see the release of the Purchasing Managers' Index (PMI). It's a leading indicator of economic health - businesses react quickly to market conditions, and their purchasing managers hold perhaps the most current and relevant insight into the company's view of the economy. On Thursday the Australian Bureau of Statistics will release the latest Consumer Price Index (CPI). Consumer prices account for a majority of overall inflation. Inflation is important to currency valuation because rising prices lead the central bank to raise interest rates out of respect for their inflation containment mandate.