Steady as she goes

by David Taylor

 

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

Disclaimer

The content in my blog is non advisory, please do not interpret this as advice in any way shape or form. These are just my thoughts and nothing I say should be acted upon.