The Australian dollar is making another run for the US80c mark in today’s trading session after another stellar jobs report which shows the local economy is in great shape.
Data released earlier today from Australia showed there were 34,000 which smashed expectations for a figure of 9,000 and marks the best yearly run for jobs growth since 2015
The unemployment rate rose from 5.4 to 5.5 percent but that was attributed to the number of people looking for work which also rose to a figure of 65.7 percent.
“The rise in the unemployment rate is actually a positive sign for the Australian labor market,” said Marshall Gittler, chief strategist at ACLS Global.
“That’s because it’s due to a rise in the participation rate. It means people are getting more confident about the labor market and so some people who were previously on the sidelines have decided to look for work. That’s good for the economy.” He added.
Wage growth in Australia is still a little slack but some predict this will soon will soon follow the rise in job figures which in turn will boost inflation which currently sits below the RBA’s target rate.
This will allow the Reserve Bank of Australia to begin lifting interest rates as the year unfolds.
“It’s An Encouraging Report For The Economy, Government And RBA. We’ll Need to See Some Further Declines In Unemployment And Underemployment, But If They Are Forthcoming, Wages Growth Should Begin To Lift And The RBA Will Likely Be Able To Remove Some Monetary Accommodation During 2018” Noted Ivan Colhoun, National Australia Bank
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