The unemployment rate has fallen to a four-and-a-half-year low at 5.4% due to lower participation rate which edged down 0.1 percentage point to 65.1%. The data shows 24,300 full-time jobs were added with 20,700 parttime jobs lost, thus raising monthly hours worked by 0.3%.

The slight fall in the unemployment rate was unlikely to do anything to start driving wages. With inflation muted across the economy, most economists expect the Reserve Bank of Australia to keep interest rates on hold at a record low 1.5% for some time. We believe the Australian dollar will hover around 0.75 to 0.77 against the USD in 2017.

• The unemployment rate has fallen to a four-and-a-half-year low at 5.4% despite a disappointing 3,700 jobs created in October. The last time unemployment was this low was in February 2013.

• The data shows 24,300 full-time jobs were added with 20,700 part-time jobs lost. In view of the rise in full-time jobs, monthly hours worked rose 0.3%.

• The drop in unemployment rate was due to lower participation rate which fell 0.1 percentage point to 65.1%.

• Unemployment had been stuck between 5.5% and 6.0% for the past two years, having fallen from a peak of 6.4% in October 2014.

• The slight fall in the unemployment rate was unlikely to do anything to start driving wages. With inflation muted across the economy, most economists expect the Reserve Bank of Australia to keep interest rates on hold at a record low 1.5% for some time. We believe the Australian dollar will hover around 0.75 to 0.77 against the USD in 2017.

Source: AmInvest Research - 17 Nov 2017