Market News
Sterling hits six-month high against fading dollar - REUTERS
Summary
Australian economy lost 15,800 jobs in July after solid employment growth in June.
Unemployment rose to 4.5%, its highest level since late 2021.
Markets see little chance of an immediate Reserve Bank of Australia rate hike.
A rate increase by the end of the year remains around 50% priced.
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%, making forthcoming inflation data particularly important for the direction of monetary policy.
