The unemployment rate told a good news story today. It came in steady at 5 per cent, however the number of full time positions did rise by 47,600. The jobless rate remained at 5 per cent because there was a significant drop off in part time employment.
The Aussie dollar fell on the news because it was a reminder that wages are unlikely to pose a threat to inflation in the short term - and hence there's less pressure on the Reserve Bank to raise rates (higher interest rates correlate with a higher dollar - for reasons mentioned in previous posts).
Today simply adds to the case that the RBA can sit tight for the time being.
David Taylor
