FXTM information and reviews
FXTM
93%
OctaFX information and reviews
OctaFX
91%
FXCC information and reviews
FXCC
90%
Libertex information and reviews
Libertex
89%
FxPro information and reviews
FxPro
88%
HotForex information and reviews
HotForex
87%

Another strong month on Australia labor market


26 February 2019

The latest jobs report by the Australian Bureau of Statistics (ABS) showed that the labor market data beat the expectations with growth surging. The data underlined that Australian employers added more full-time job amid the jobless rate staying the lowest in seven years.

The jobs report boosted the confidence of the policymakers in the Australian economy. Official data showed that the economy added a total of 39,100 jobs during January. This came as December’s payroll figures scored lower to a still substantial number of 16,900.

January’s payroll figures beat the estimates which pointed to a 15,000 increase during the month. While the Australian dollar surged on the news, the gains did not hold. One of the major banks in Australia, Westpac Banking Corp. announced a rate cut later this year.

The announcement came as the bank cited slowing economic growth and moderate inflationary pressures. The bank, in its outlook, however, pointed to the latest jobs report as a risk to its financial outlook.

RBA keeping steady interest rates


The data comes as the RBA held its monetary policy meeting, and kept the key interest rates unchanged at 1.50%. This saw Australian interest rates holding steady for nearly two and a half years. Officials continue to stay hopeful for the labor market to pick up strength which could push wages and inflation higher.

The markets are currently expecting the RBA to hold interest rates at 1.50% for at least until early 2021. Australia’s property market has been in decline and is a significant cause for concern among the policymakers.

The significance of the jobs report was crucial as recently, Guy Debelle, the deputy governor the RBA, talked about the importance of the labor market in the economy. “Our main job is to make sure that the economy continues at a reasonable pace, with a low level of unemployment,” he said, noting that it was vital as it allows people to manage their mortgages.

The RBA Governor Philip also said that the RBA would be looking to a rate cut only if the unemployment rate continued to rise.

The latest labor market report comes in line with the RBA’s expectations which hopes will see a rise of 2.2% increase than the 1.6% increase in population. The Australian unemployment rate holds steady at 5.0% which marks a seven and a half year low. The unemployment rate held steady for the second consecutive month.

Positive numbers


There was also an increase in the participation rate in January. The data underscored the fact that the unemployment rate held steady despite more people looking for work. The participation rate increased to 65.7% during the month.

The jobs report brought some bout of confidence to the policymakers who should remain on the sidelines as far as it concerns the rate hikes.

Under the current conditions, a lower unemployment rate and a robust jobs market amid lower interest rates could feed into the economy over time eventually. This could also potentially stem the decline in the property markets in cities such as Sydney and Melbourne.

Some leading indicators point to a continued period of strength in the Australian labor market. Also, employment growth should rise, both of which are positive signs for household spending to improve.

This, in turn, should give a boost to inflation. In a separate report, data showed that the number of jobs advertised rose to the highest level in nearly six and a half years.

Despite the overall strong jobs report, Australian dollar faces bumps ahead. This is due to the rate cut announcement from Westpac, which overshadowed the jobs report release.

Share:


Related

Fed Hawkish Policy Leads to Slip of Asian Shares
Fed Hawkish Policy Leads to Slip of Asian Shares

On Friday, Asian stocks plummeted as a new round of hawkish statements from Federal Reserve officials bolstered predictions that interest rates in the United States...

17 Jan 2022

Crude Oil is Heading Towards Highs
Crude Oil is Heading Towards Highs

On Monday, 17 January, the Brent price remains “in the black”; investors are clearly intending to update 7-year highs in the instrument. Brent is trading at $86.40...

17 Jan 2022

Equity bulls jittery, dollar sinks as investors digest inflation data
Equity bulls jittery, dollar sinks as investors digest inflation data

Most Asian shares ventured into negative territory this morning while European stocks markets have opened up marginally lower open after the December U.S...

14 Jan 2022

Stock Futures Trade higher
Stock Futures Trade higher

US stock futures are trading higher as investors continue to digest economic data. This month we have seen much weaker employment numbers and other economic...

12 Jan 2022

Fed Hawks, Markets Stumble, Mixed NFP
Fed Hawks, Markets Stumble, Mixed NFP

Investors marched into the new year with a renewed sense of confidence as concerns over the Omicron variant eased. European shares hit a record high in the first session...

10 Jan 2022

Stock Futures Plunge, BTC Price Crashes
Stock Futures Plunge, BTC Price Crashes

The cryptocurrency markets also got tangled up in yesterday’s massive slump in equity markets. Bitcoin’s price is crashing and traders are wondering how low the price will go...

7 Jan 2022


Editors' Picks

XM information and reviews
XM
86%
FXCM information and reviews
FXCM
85%
AvaTrade information and reviews
AvaTrade
84%
LegacyFX information and reviews
LegacyFX
83%
FP Markets information and reviews
FP Markets
82%
FreshForex information and reviews
FreshForex
81%

© 2006-2022 Forex-Ratings.com

The usage of this website constitutes acceptance of the following legal information.
Any contracts of financial instruments offered to conclude bear high risks and may result in the full loss of the deposited funds. Prior to making transactions one should get acquainted with the risks to which they relate. All the information featured on the website (reviews, brokers' news, comments, analysis, quotes, forecasts or other information materials provided by Forex Ratings, as well as information provided by the partners), including graphical information about the forex companies, brokers and dealing desks, is intended solely for informational purposes, is not a means of advertising them, and doesn't imply direct instructions for investing. Forex Ratings shall not be liable for any loss, including unlimited loss of funds, which may arise directly or indirectly from the usage of this information. The editorial staff of the website does not bear any responsibility whatsoever for the content of the comments or reviews made by the site users about the forex companies. The entire responsibility for the contents rests with the commentators. Reprint of the materials is available only with the permission of the editorial staff.
We use cookies to improve your experience and to make your stay with us more comfortable. By using Forex-Ratings.com website you agree to the cookies policy.