The jobless rate was unchanged at a downwardly revised 4.1%. — Reuters
SYDNEY: Australia’s powerful stretch of hiring extended into September and the unemployment rate held steady, prompting a rise in the currency as traders scaled back bets on the Reserve Bank of Australia’s (RBA) first interest-rate cut.
Employment rose 64,100 – driven by full-time jobs – versus a forecast 25,000 gain, Australian Bureau of Statistics (ABS) data showed yesterday.
The jobless rate was unchanged at a downwardly revised 4.1%.
The Australian dollar rose as much as 0.4% to 66.91 US cents and the yield on policy-sensitive three-year government bonds jumped to the highest since July 31.
Traders pared bets that the RBA would begin an easing cycle in February to 70% having previously fully priced a 25 basis-point rate cut.
“The record employment-to-population ratio and participation rate shows that there are still large numbers of people entering the labour force and finding work in a range of industries, as job vacancies continue to remain above pre-pandemic levels,” said Bjorn Jarvis, ABS head of labour statistics.
The report, along with third-quarter inflation due later this month, will be important inputs for the RBA’s November policy meeting, where it’s expected to keep rates at a 12-year high of 4.35%.
Economists reckon the RBA’s next move is down, with a first cut seen only next year.
That’s broadly in-line with governor Michele Bullock’s thinking after she all but ruled out policy easing in the near-term. — Bloomberg
