A huge beat for the Australian labour market report:

I mentioned in that post the RBA want wage growth as well as employment growth to help lift inflation towards its target. The RBA target for the jobless rate is 4.5%, they expect that would prompt wage growth of 3 to 3.5% which in turn would lift inflation.

The 4.5% jobless rate may come sooner than the Bank forecasts, but will that be low enough to prompt wage increases? The RBA (in the minutes to the June meeting out earlier this week), and Governor Lowe (just earlier today) have both noted non-wage benefits are being used to entice employees to jobs. Perhaps its time for hedonic quality adjustment to wages as well as inflation!

Anyway, AUD/USD response:

aud usd chart may 2021 employment report