Australia: Strong employment numbers - BBH
|Australia reported strong employment data and as a result after making new highs near $0.8000, AUD has reversed to toy with yesterday's low.
Key Quotes
“A convincing break of that area (~$0.7910), especially on a closing basis, could be the kind of technical reversal that momentum traders take note.”
“Australia created 62k new full-time positions while losing 48k part-time positions. It is the fourth strong full-time job creation over the last five months. Consider that in H1, Australia created on average nearly 28k full-time jobs a month. Last year, the monthly average was a loss of nearly 2k full-time jobs. Hours worked rose 4.6% at an annualized rate in Q2.”
“The employment data bodes well for consumption, production, and exports. The central bank is likely to recognize the diminished downside risks while the substantial slack discourages a rate hike. Wage pressures are modest and next week's Q2 CPI is expected to show steady or slower inflation.”
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