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Possible Improvement on Australian Employment Data as Virus Cases Drop

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Australian Prime Minister Scott Morrison eyes a possible outlook on employment data as virus cases are dropping while Australia prepares for a cautious reopening.  

On Sunday, new virus cases fell to 14, said the state’s health department on Twitter. The local administration has set a benchmark for a slight easing on restriction on Sept. 28 and the current data shows that it comfortably declined below the 50 level with the 14-day average declining to 36.2 in metropolitan Melbourne. 

The Australian government benefits from the dropping of cases, combined with strong recent jobs data. 

The government must weigh the need for further stimulus while the country is in its first recession in almost three decades with its interest rates already at a record low. 

“There will be hundreds of thousands of more jobs come back in between now and Christmas,” Morrison told the ABC’s Insiders program on Sunday. “Victoria will bounce back and that will add to the level of jobs growth.” 

The budget will include “a range of measure,” Morrison said, while refusing to be drawn on specifics. His administration’s signature JobKeeper wage-subsidy program is due to end next year and rates of payment will be cut from this month. 

“You don’t have to hold on to every measure forever,” Morrison said. “There are other measures that come in and pick up from where others left off.” 

On Sunday, The Sydney Morning Herald reported that the administration is preparing an “astounding” injection of money into the economy, citing senior government members it didn’t identify. 

One possibility is that already-scheduled income tax cuts will be brought forward. Such a move could spur households to part with some of their recently built-up savings and boost consumption, Commonwealth Bank of Australia said in a research note Friday. 

TECHNICAL OUTLOOK 

  

In the daily charts of AUD/USD, the pair opened at 0.7292 on Monday morning in Asia Session. 

The AUD/USD pair edged up 0.18% to 0.7302. With positive data of COVID-19 cases falling and employment expected to rise, AUD is surging higher. 

Although the pair is still trading within the range of support and resistance, we can expect a positive outlook from AUD as Australia prepares for its reopening. 

AUD has been threading higher since last week against the U.S. dollar and is gaining despite the lockdown measures and ongoing recession. Speculations of the pair breaking out past the resistance at 0.74200 is being eyed out by traders if the Australian government will further mandate any stimulus to push the price higher past the resistance. 

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