Westpac Banking Corporation now no longer expects RBA rate cut in February, pushes out cut forecast to April and expects a further cut in August 2020.
- "Due to the surprise back to back fall in the unemployment rate in November and December, we expect the RBA will delay the next rate cut until April."
Aussie jobs data
- December Unemployment Rate: 5.1% vs 5.2% expected/prior - bullish! RBA odds of rate cut will be falling on this data.
- December Employment +28.9K vs+15.0k expected, vs 39.9k prior.
- December Full Time Employment -0.3K vs 4.2k prior.
- December Participation Rate +66.0% vs 66.0% expected.
Australia's trend unemployment rate decreased to 5.1 per cent in December 2019, according to the latest information released by the Australian Bureau of Statistics (ABS) today.
ABS Chief Economist Bruce Hockman said: "In December 2019, the trend unemployment rate decreased slightly to 5.1 per cent, its lowest level since April 2019."
In December 2019, trend monthly employment increased by around 18,000 people. Both full-time and part-time employment increased by around 9,000 people.
Over the past year, trend employment increased by around 261,000 people (2.1 per cent), which continued to be above the average annual growth over the past 20 years (2.0 per cent).
Full-time employment growth (1.5 per cent) was below the average annual growth over the past 20 years (1.6 per cent) and part-time employment growth (3.2 per cent) was above the average annual growth over the past 20 years (3.0 per cent).
The bullish channel is still intact
Meanwhile, bulls will now be hoping for a positive Consumer Price Index outcome (30.Jan) ahead of the Reserve Bank of Australia, 4th Feb.
The price of the Aussie has been supported at channel support and are largely in range of yesterday's analysis ahead o the event as follows: AUD/USD Price Analysis: The price action and levels to look for on Aussie jobs
Update AUD/USD price analysis
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.