Market News
Australia jobless rate hits near 5-year high of 4.5% in July - REUTERS
Summary
- Australian economy lost 15,800 jobs in July following solid employment growth in June.
- Unemployment rose to 4.5%, its highest level since late 2021.
- Markets see little chance of an immediate RBA rate hike.
- The probability of a rate increase by the end of 2026 remains around 50>#/strong###.
Labour Market Weakens
Australian employment unexpectedly declined in July, while the unemployment rate climbed to its highest level since late 2021.
The figures provide further evidence that Australia's labour market is cooling and reduce pressure on the Reserve Bank of Australia (RBA) to raise interest rates again in the near term.
Australian Dollar Falls
The Australian dollar declined 0.2% to US$0.7111 following the employment report.
RBA Interest-Rate Outlook
Financial markets are pricing in very little probability of an RBA rate increase at its next meeting.
However, the possibility of another increase before the end of the year remains approximately 50>#/strong###, meaning forthcoming inflation data will be particularly important in determining the direction of monetary policy.
