Australian Jobs Data Change Investor Expectations For RBA!

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 Australia's August employment data reading raises uncertainty over the next direction the Reserve Bank of Australia (RBA) will take in setting interest rates.


The latest figures from the Australian Bureau of Statistics (ABS) showed employment increased by 33,500 last month, missing expectations for an increase of 35,000.


However, this reading was better than the reading in July which saw a sharp decline in employment of 41,000.


Meanwhile, the unemployment rate increased for the first time in 10 months to 3.5% from 3.4%.



RBA Governor Philip Lowe has recently indicated flexibility to move to a slower rate hike provided it is followed by incoming data.


As of September, the central bank has raised interest rates to 2.35% which is the highest in 7 years.


Markets now expect the central bank to move at a slower 25 basis point rate hike and stop at around the 3% level in its cash rate.


The reaction to the Aussie dollar saw the currency little changed following the data with price movements still limited by USD trading which remained strong.

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