Employment Change usually record and measures the workers in Australia. Then those numbers are compared to the previous month. The number of workers is strongly influenced by the available jobs.

It is also an early indicator of consumer spending that shows overall economic activity. This data was released along with the percentage change in the unemployment rate compared to the previous month. 

The unemployment rate is always considered by the RBA to determine growth targets and policy changes in interest rates. Last October, employment in Australia increased by 32,200 jobs.That was muchhigher than the forecast of 15,000 jobs, and also much higher than the previous month which decreased by 3,800 jobs. 

Unemployment Rate fell to 3.4% in October 

Meanwhile the October unemployment rate fell to 3.4%, lower than forecast and the previous month's 3.5%. The participation rate in October 2022 reached 66.5%.

That number was the same as the previous month and the lowest in the last 3 months. For November 2022, it is estimated that employment will increase by 19,400 jobs.

Besides that, the unemployment rate is expected to remain at 3.4%. The release of higher-than Expected employment growth data and a lower than expected rate will likely cause the AUD to strengthen. 

Unlike the central banks of other major currency countries that announce their interest rates per month, the SNB announces thoae ratus per 3 months (quarterly).

SNB has Cut Their Rate for 2 Times 

Since implementing the 0.0% interest rate in August 2011, the SNB has cut its interest rate 2 times. It was bu 0.25% each on December 18, 2014, and 0.50% on January 15, 2015.

These came along with the release of the CHF pegging against the EUR which has been running for 3 years. The benchmark interest rate of -0.75% is the lowest since 2000. 

After lasting more than 7 years, at the meeting last June the SNB surprisingly raised the benchmark interest rate by 50 basis points. It means that was around 0.50% to -0.25%.

After that, at the last meeting on September 22, the interest rate was again scraped by 75 basis points or 0.75% to +0.5%. The central bank also did not rule out further rate hikes in its next meeting. 

SNB Revised Down their Forecast 

The statement said that the decision to raise interest rates was made to counter rising inflationary pressures and prevent price increases from spreading more widely.

The situation above was following a surge in energy and food prices that caused annual inflation last August to reach 3.5% or the highest in 29 years. The SNB said as well that they are willing to intervene in the forex market if it is needed. 

On inflation projections, the SNB revised down its forecast for this year to 3.4% compared to the previous projection of 3.0%. The number will be around 1.7% in 2023 compared to the previous projection of 1.4%. 

Meanwhile, the central bank also lowered its growth projection to 2.0% for this year compared to the previous forecast of 2.5%. It was done due to energy prices putting pressure on the manufacturing sector. 

Inflation can Fall next year

With Swiss inflation in November still relatively high Which is around +3.0% year over year, above the central bank's target of 0-2.0%, at the December meeting it is expected that the SNB will again raise the benchmark interest rate by 50 basis points.

Or the most possible amount is 0.50% to +1.00%. If this situation happened, CHF has a possibility to be stronger again in the market. 

The central bank also said that further rate hikes may be needed to return sustained inflation to target. In economic projections, GDP is projected to continue to fall throughout 2023 and 2024.

That is due to high energy prices and tighter financial conditions. Meanwhile, inflation at the consumer level will start falling at the beginning of next year, before falling sharply to below the 2.0% target within two years.