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12 Sep 2013
Flash: Aus jobs might see market having re think on RBA - NAB
FXstreet.com (Barcelona) - As NAB explains in a note to its clients, Australia’s Labour Force data today will clarify perceptions towards the RBA’s likely policy course ahead, with a rate cut pricing currently about 40% by Q1 2014 and 25% by Nov this year.
Key Quotes
"Today’s Labour Force data might see the market having a re think on the RBA outlook. If, as we expect, the unemployment rate rises, this could see the market increase the odds that the RBA will come back before the end of the year."
"While the boost to both business and consumer confidence revealed post election is very welcome, the reality is that the economy is facing headwinds from soft domestic demand and unemployment is set to trend higher."
"For August, we expect modest jobs growth of 5K (market 10K), with the unemployment rate at 5.8%, up from 5.7%, in line with the market median forecast."
Key Quotes
"Today’s Labour Force data might see the market having a re think on the RBA outlook. If, as we expect, the unemployment rate rises, this could see the market increase the odds that the RBA will come back before the end of the year."
"While the boost to both business and consumer confidence revealed post election is very welcome, the reality is that the economy is facing headwinds from soft domestic demand and unemployment is set to trend higher."
"For August, we expect modest jobs growth of 5K (market 10K), with the unemployment rate at 5.8%, up from 5.7%, in line with the market median forecast."