The Australian labour market appears to be cooling somewhat, which could give the Reserve Bank of Australia room to cut key interest rates again in August, Commerzbank’s FX analyst Volkmar Baur notes.
Australia jobs data points to August RBA cut
“With just 2,000 jobs added, the labour market fell short of analysts’ expectations. And after just over 1,000 jobs were cut last month, there has been virtually no job growth in the last two months. To be fair, it must be said that April saw an extremely strong labour market, so this could still be a pause for breath. However, the unemployment rate also rose to 4.3%, its highest level in almost four years, although this was supported by a slight increase in the participation rate.”
“It is therefore too early to say whether this is really the beginning of a slowdown in the labour market or whether it is just another breather before another strong labour market report. However, I suspect that it should be enough to make the RBA’s decision to cut interest rates in just under four weeks’ time in August a little easier. The market has fully priced in this move, so the AUD should not be negatively affected.”
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
