Australia: Nothing special in September Employment report – TDS
According to analysts at TD Securities, there is nothing in the Australia’s September Employment report that serves as a trigger for the RBA to cut the cash rate next month.
Key Quotes
“Even though the headline print of +14.7k was close enough to the market's +15k f/c, the internals were more positive - full time jobs rose +26.2k, more than offsetting the prior month's drop and the unemployment rate dipped from 5.3% to 5.2% (thanks to a drop in the participation rate from 66.2% to 66.1%).”
“More importantly the underemployment rate dropped from 8.5% to 8.3% in turn driving the underutilisation rate from 13.8% to 13.5% implying less spare capacity. The RBA can breathe a sigh of relief that a near term rate cut is off the agenda but the broader trend remains for spare capacity to edge higher.”
Author
Sandeep Kanihama
FXStreet Contributor
Sandeep Kanihama is an FX Editor and Analyst with FXstreet having principally focus area on Asia and European markets with commodity, currency and equities coverage. He is stationed in the Indian capital city of Delhi.
