Key Australian labour market posted strong figures – UOB

Economist at UOB Group Lee Sue Ann gave her view on the recent publication of the Australian labour market report.

Key Quotes

“Australia’s employment surged past expectations in July, despite worries of an economic slowdown. Overall job creation came in at an impressive 41,100, well above the 14,000 markets were expecting. Full-time employment rose by 34,500 whilst part time positions were up by 6,700. However, the unemployment rate was stubbornly stuck at 5.2% as more people went looking for work. The participation rate — the proportion of the adult population in work or actively looking for a job — rose to a record 66.1%”.

“Earlier this month, the Reserve Bank of Australia (RBA) kept its official cash rate (OCR) on hold at 1.00%, as expected. The RBA has singled out the labour market as key for whether it needs to cut rates again. Today’s strong rise in employment data for July suggests that the RBA can afford to be a little bit more patient at this juncture”.

“We do acknowledge, though, that risks remain tilted to the downside, and easing pressure by other central banks may push the RBA into another rate cut. On the domestic front, the RBA has set a goal of reaching a jobless rate of 4.5% — a tough mark, given that the jobless rate has been stuck above 5.0% since bottoming at 4.9% in February”.

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.

Feed news

Latest Forex News

Editors’ Picks

EUR/USD flirts with 1.1100 as the dollar loses steam

The EUR/USD pair bounced from a daily low of 1.1065, as demand for the greenback receded during US trading hours. Upside caped for the shared currency amid fears of a German recession, Italian political turmoil.


GBP/USD losses upside momentum at the start of the key day

While optimism surrounding soft Brexit helped the GBP/USD pair to rise on the previous day, the Cable retraces to 1.2165 amid initial Wednesday morning in Asia. The UK PM’s visit to Germany will be closely observed.


USD/JPY: bears moving back to the front

Demand for safe-haven assets picked up in the American session. US 10-year Treasury note yield fell to 1.54% intraday, settles barely above. USD/JPY to resume decline on a break below 106.05, a Fibonacci support.


Gold: Bulls cheer pullback from 10-day EMA

Following its successful bounce off 10-day exponential moving average (EMA), Gold takes the bids to $1507 during the early Asian session on Wednesday. The yellow metal now heads to Friday’s high around $1528 ahead of questioning the monthly top surrounding $1535.

Gold News

Top 3 Price Prediction Bitcoin, Ripple, Ethereum: Planning the next bullish move after consolidating gains

Trading cryptos is not a one-way street – meteoric unstoppable gains belong to the past. Nevertheless, the bullish sentiment seems to prevail. Digital coins advanced on Monday and are consolidating on Tuesday. 

Read more