Trading the News: Australia Employment Change
A 15.0K expansion in Australia Employment may generate fresh 2017-highs in AUD/USD as it puts pressure on the Reserve Bank of Australia (RBA) to lift the official cash rate off of the record-low.
Why Is This Event Important:
A further improvement in the labor market conditions may encourage RBA officials to alter the course for monetary policy as the central bank now forecasts ‘a neutral nominal cash rate of around 3½ per cent, given that medium-term inflation expectations were well anchored around 2½ per cent.’ In turn, Governor Philip Lowe and Co. may start to prepare Australian households and businesses for higher borrowing-costs as ‘the data available for the June quarter had generally been positive,’ but a dismal development may push the central bank to buy more time as ‘members noted that there were still risks to consumption growth should household income growth remain subdued, particularly given the high levels of household debt.’
Impact Australia Employment report has had on AUD/USD during the last print
Period
Data Released
Estimate
Actual
Pips Change
(1 Hour post event )
Pips Change
(End of Day post event)
JUN
2017
06/15/2017 01:30:00 GMT
10.0K
42.0K
+26
-8
June 2017 Australia Employment Change
AUD/USD 5-Minute
The Australian economy added another 42.0K jobs following a 46.1K expansion in April, while the jobless rate unexpectedly narrowed to an annualized 5.5% from 5.7% to mark the lowest reading since 2013. A deeper look at the report showed full-time positions increased 52.1K in May, while part-time employment slipped 10.1K during the same period.
Bullish AUD Trade: Employment Rises Another 15.0K or More
