Today's Australian employment data is here:
Australia - April employment data, Employment Change: -2.9k (vs. +4k expected)
Despite the headline coming in negative and below expected, this was a solid report. Most notably:
- The previous month's strong employment growth was revised higher by 3,400
- There was a big jump in hours worked
UBS comments (bolding is mine):
Today's softer jobs report does not lead us to rush towards calling an additional easing
We continue to see the RBA sitting back and being on hold at 2 per cent for a prolonged period of time
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I agree.
This is what I said earlier ... but I'm gonna bold a section of it:
The RBA will adopt an easing bias on Friday in the SOMP ... but the question is, who'll believe them? They're done for now. If it's a weak employment number I suspect we'll see some trader selling but longer time-frame players will be there on bids a little lower.
