- Australia’s employment change declines
- Markets reduce expectations of a Fed stop in June
The Australian dollar resumed its downward trend on Thursday, after a brief pause the day before. AUD/USD has fallen 0.26% in Europe to 0.6641.
Australian employment slips
Australia’s April employment report surprised to the downside today, sending the Australian dollar lower. After a gain in March of 61.100, net employment in Australia fell by 4.300 in April. The market estimated 25,000. The decline in full-time employment of 27,100 after an increase of 72,000 was even more alarming. The unemployment rate also increased to 3.7% from 3.5% in March.
Reserve Bank of Australia will pause rate increases at its June 6 meeting due to the soft employment numbersThe th Meeting, after shocking markets with a hike of 25 basis points earlier this month. According to the ASX RBA rate tracker, there is a 100% chance of a pause. The central bank wants to reduce its rate hikes to help the economy reach a soft land. A cooling labour market is sure to assist. The RBA will need to see a continued decline in inflation before it can take another pause.
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