Australian Market Report, May 17-22, 2026

The Vietnam Trade Office in Australia has compiled a summary of key Australian market news for the week of May 17-22, 2026, for the reference of businesses and the public.

1. Unemployment rates in Australia continued to rise in April.

According to data from the Australian Bureau of Statistics (ABS), the unemployment rate in Australia continued to rise in April 2026 to 4.5% (compared to 4.3% in the previous month). Of this, the number of employed people reached over 14.74 million, an increase of 129,000 people (+0.9%) compared to the same period in 2025 but a decrease of 18,600 people compared to the previous month; the number of unemployed people was over 692,500, an increase of over 75,000 people (+12.3%) compared to the same period in 2025.

Chart showing unemployment rates in Australia over time; source: ABS

The steadily increasing unemployment rate in the first four months of 2026 indicates that the Australian labor market has begun to face difficulties, reflecting the negative impacts of the Middle East conflict and rising fuel prices on the Australian economy . Experts predict that the unemployment rate may continue to rise in the coming months.

2. The Australian livestock industry is facing difficulties in supplying cottonseed feed due to drought.

Many livestock farmers in Australia are facing difficulties in stockpiling cottonseed for animal feed as prolonged drought conditions reduce crop yields. Cottonseed is a byproduct of the cotton fiber separation process, in which the fibers are separated from the seeds before being cleaned and spun into yarn; the remaining cottonseed is rich in fiber and protein and is commonly used as a feed supplement in Australian livestock.

Cotton plants are grown in Australia; Source: ABC News

Forecasts indicate that Australian cotton production could fall by about a third next season, reducing the supply of cottonseed for the livestock industry. The El Niño weather phenomenon is expected to intensify, while high shipping costs are driving up the price of animal feed. According to some farmers, seed prices this year are around AUD 100/tonne higher than last year, with transportation costs increasing by AUD 70/tonne, eroding farm profits.

3. AUD/USD exchange rate cools down.

After reaching a record high of 0.7231 USD/AUD last week, the Australian dollar (AUD) has now cooled down to around 0.71 USD/AUD, equivalent to a decrease of nearly 2%. The AUD/USD exchange rate fell after the Australian Bureau of Statistics released employment data showing an increase in the unemployment rate, which dampened market expectations that the Reserve Bank of Australia (RBA) would raise interest rates.

AUD/USD exchange rate; source: RBA

Another factor that is considered likely to impact the exchange rate is preliminary data showing that the Producer Price Index (PMI) for May 2026 decreased slightly compared to April 2026. However, experts believe that the AUD will only experience a slight correction and will remain stable around the 0.71-0.72 USD/AUD range; a significant decline is unlikely in the short term.

4. Singtel plans to sell its stake in the Australian telecommunications company Optus.

Singaporean telecommunications giant Singtel plans to sell a significant stake in Optus, one of Australia's leading telecommunications companies, to interested parties; Singtel has already submitted a notice to the Singapore Stock Exchange regarding this plan.

Customers at an Optus store; source: AFR

Singtel's move is not considered surprising, as the group has been discussing selling part or all of its stake in Optus for many years. Singtel acquired Optus for over AUD 17 billion in 2001; now, after 25 years of ownership, the group is looking to sell to restructure its finances and optimize its investment portfolio. The most potential buyers of Optus from Singtel include EQT, KKR, and Bain…

5. The US plans to make significant investments in Australian quantum computing companies.

The Trump administration plans to invest heavily in two quantum computing startups backed by the Australian government : PsiQuantum and Diraq. This is part of a larger investment plan of approximately $2 billion (AUD 2.8 billion) aimed at developing the quantum technology supply chain.

Professor Jeremy O'Brien and Terry Rudolph, the founders of PsiQuantum; Source: AFR

Accordingly, PsiQuantum, along with four other companies, will each receive $100 million from the U.S. Department of Commerce. PsiQuantum is currently valued at over $10 billion and is also attracting investment interest from the NVIDIA. Meanwhile, Diraq will receive $38 million to accelerate the development of technology to build affordable quantum computers. Founded in Sydney, Diraq currently has offices and laboratories in Palo Alto and Chicago, and is planning to open a new facility in Los Angeles.

In return, the US government will receive a "minority, non-controlling stake" in each company. This is seen as a move to boost US quantum computing capabilities while countering the strong rise of Chinese technology companies in this field.

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Source: Vietnam Trade Office in Australia

Tags: Vietnam Trade Office in Australia, Australian Market

Source: https://moit.gov.vn/tin-tuc/ban-tin-thi-truong-uc-tu-8-5-15-5-2026.html