16.06.2014 - Unemployment in Australia will not significantly decrease until the end of 2015

Deputy Head of the Reserve Bank of Australia Christopher Kent stated that the unemployment rate will remain high over the next two years. The reason for the increase in unemployment is the reduction of investments in the mining sector, as well as labor force growth due to immigrants. Despite this the representative of the RBA noted improvement of trends in recent months.

We should recall that the main driver of growth against decrease in investments in the mining sector should be the construction sector. Among the main risks to the Australian economy are the slowdown in China's industry and drop in iron ore prices on the world markets.

We expect a continued fall of the Australian dollar in the near future with the target of 0.9300, and keep a medium-term negative outlook.

RISK WARNING: Trading of complex financial products, such as Stocks, Futures, Foreign Exchange ("Forex"), Contracts for Difference ("CFDs"), Indices, Options, or other financial derivatives, on "margin" carries a high level of risk, and may not be suitable for all investors. The possibility exists that you could sustain a loss of some or all of your initial investment and, therefore, you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with trading these markets, and seek advice from an independent financial advisor if you have any questions or doubts. Please carefully read our full "Risk Disclosure" and "Risk Disclosures for Financial Instruments & Investment Services". FXFINPRO Capital is the trading name of PFX Financial Professionals Limited, a limited liability company formed under the laws of Cyprus, registered with the Registrar of Companies in Nicosia, Cyprus, under nr. HE 237840 and regulated by the Cyprus Securities and Exchange Commission with license number 193/13.