Australia reported the largest two-month gain in jobs since late 2006 and the lowest unemployment rate since August today.
But asks Bloomberg … Are the numbers believable?
In the ‘Yes’ camp:
Michael Turner, a strategist at Royal Bank of Canada in Sydney:
- “We are more wary than usual of the labor force data given recent measurement problems, but three solid monthly gains are hard to ignore and even harder to ignore is the dip in the unemployment rate”
Shane Lee, a Sydney-based senior economist at CIMB Securities:
- This time the stronger-than-forecast numbers look about right because they are in line with other indicators such as job advertisements.
In the ‘No” camp:
Morgan Stanley analysts:
- “We are skeptical of the healthy recovery apparent on the surface of Australia’s labor force data, with broader trends and indicators remaining soft and GDP growth momentum likely to slow further”
More at the article (worth reading in full ,,,, and its not too long)
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More from Australia today:
- Australian employment data – economist reactions
- ANZ Bank forecasts RBA to cut cash rate by 0.5% in H1 of 2015
- More from ANZ – expect AUD/USD to fall to 74 cents
- Australia – Employment Change: +37.4K (vs. expected 5.0K)
- Credit Suisse … chance of a rate cut at the RBA February meeting has halved
- HSBC – RBA’s easing phase is done
