Australian Dollar, Stocks Rise on Dec Jobs Data

Darlington Musarurwa
14 Jan, 2010
New York City

Australian dollar and stocks gained after the release fourthly monthly jobs gains in December. Unemployment fell 0.1% to 5.5% and business across the economy added staff. Rio Tinto iron ore production surged 49% on China demand.

[R]3:00 AM New York, 7:00 PM Sydney – Australian dollar and stocks gained after the release fourthly monthly jobs gains in December. Unemployment fell 0.1% t0 5.5% and business across the economy added staff. Rio Tinto iron ore production surged 49% on China demand.[/R]

Australian market averages rose after December unemployment rate declined and record iron ore production at Rio Tinto mines.

The Australian dollar gained nearly 1% and the yields on 2-year government bonds increased 10 basis points to 4.56%.

In Sydney trading ASX 200 Index climbed 0.6% or 29.9 to 4,898.00.

Of the ASX 200 index stocks, 92 advanced, 91 fell, and 17 were unchanged. Lynas Corp. led gainers in the index shares with a rise of 5.7% followed by Atlas Iron jumping 5.1%.

The Australian dollar increased 0.6% to 93 U.S. cents after the release of jobs report.

December Unemployment Falls to 5.5%

Australian Bureau of Statistics reported today the country’s unemployment rate fell 0.1% to 5.5% in December from a revised 5.6% in November.

The number of employed increased 35,200 to 10.9 million in December spurred by part-time employment rising 27,900 to 3.2 million and full-time employment jumping 7,300 to 7.6 million.

The ABS said the number of people unemployed dropped by 10,600 to 639,400 but monthly aggregate hours worked eased 1 million hours to 1,535 million hours.

The participation rate in December was 65.2% of population.

Rio Tinto Iron Ore Production Rises 49%

Rio Tinto reported today that its global iron ore production jumped 49%, while global iron ore sales gained a record 61 million tons in the fourth quarter.

Production for the whole of 2009 advanced 13% to 217 million tons from a year ago.

Pilbara region fourth quarter iron ore production edged up 54% to 56 million tons from the comparable year ago period driven by strong growth in demand in China.

According to the operations review mined copper production soared 36% on increased production and refined copper production jumped 15% on the fourth quarter of 2008.

Mined gold production also advanced 141% to 1.1 million ounces in 2009 on higher grades at Kennecott Utah Copper and Grasberg.

Rio Tinto chief executive Tom Albanese said the company remains cautious as “stimulus packages start to wind down.”

Gainers & Losers

Lynas Corp led gainers in the ASX 200 index stocks with a rise of 5.6% followed by increases in Atlas Iron of 5.1%, Ibuka Resources of 4.6%, in Kagara Ltd of 4.4% and Awe Ltd of 4%.

Karoon Gas Australia led decliners in the ASX 200 index stocks with a fall of 24.3% followed by losses in Dominion Mining of 3.8%, in APN News & Media of 3.3% and Charter Hall Group of 2.8% and Panorama Resources of 2.6%.