What happened
Australian labour market data for July revealed an unexpected increase in the unemployment rate to 4.5%, up from 4.4% in June. The economy shed 15,800 jobs during the month, driven primarily by a decline in part-time employment, missing market expectations of a 12,000 job gain.
Why it matters here
The softer job figures lessen the probability of a near-term rate hike by the RBA. Financial market strategists now view a September interest rate increase as highly unlikely, helping to stabilize Australian equity market valuations and ease pressure on corporate borrowing costs following six sessions of market declines.
What to watch
The RBA's upcoming policy deliberations and quarterly wage price index data to confirm whether wage growth is slowing in line with weakening employment figures.
Source
proactiveinvestors.com