Australia Jobless Rate Hits 4.5% as Traders Cut Rate-Hike Bets
Updated
Updated · Bloomberg · Aug 20
Australia Jobless Rate Hits 4.5% as Traders Cut Rate-Hike Bets
3 articles · Updated · Bloomberg · Aug 20
Summary
Australia’s unemployment rate rose to 4.5% in July from an expected 4.4%, pushing traders to scale back bets that the Reserve Bank will raise interest rates again.
15,800 jobs were lost, versus forecasts for a 12,000 gain, with the entire decline driven by part-time work — a sign the labor market is starting to loosen.
The weaker data hit Australian assets immediately, sending the currency lower and dragging bond yields down as investors reassessed the policy outlook.
The report supports the RBA’s view that labor-market conditions are likely to soften, easing pressure for further tightening if the trend persists.