Australia’s labor market weakens, China’s exports jump, and the U.S. Fed prepares layoffs.
Australian employment dropped by 5.4K in August, while unemployment stayed at 4.2%.
China’s rare earth exports reached their highest level since 2012.
As Chair Jerome Powell signals two more rate cuts this year, the U.S. Federal Reserve plans to cut 10% of its workforce.
Full Report
In August, global markets saw notable economic developments, including mixed data from Australia, a surge in China’s rare earth exports, and U.S. plans for job cuts.
Australian Labor Market
Data from the Australian Bureau of Statistics on Thursday showed the economy lost around 5.4K jobs in August—its sharpest decline in five months—versus expectations of a 21.2K gain. Unemployment held steady at 4.2%, matching forecasts. Employment change is a key indicator of economic activity and consumer spending; typically, higher employment supports the Australian dollar, while weak data pressures it. August’s mixed results left the impact neutral.
China’s Rare Earth Exports
According to official customs data compiled by Bloomberg, China’s rare earth exports hit at least a 13-year high at 7,338 tons in August. The shipments include high-performance magnets used in tech, consumer goods, and fighter jets. This surge comes amid ongoing trade tensions between Washington and Beijing, even after recent steps toward a trade truce.
U.S. Federal Reserve
Federal Reserve Chair Jerome Powell announced plans to cut roughly 10% of the Fed’s workforce, reducing staffing to the lowest level in over a decade. Following a 25 basis-point rate cut, Powell signaled that two additional cuts are likely to support economic growth and ease borrowing costs this year.
These developments highlight divergent global economic trends: Australia faces job market pressures, China enjoys strong export momentum, and the U.S. Fed adopts cost-cutting measures while maintaining accommodative monetary policy.