This morning the Australian dollar (AUD/USD) got a small boost from the April labor market data. This number was way above estimates.
Australian employment grew by 37,400 positions in April. This was smashed through analyst expectations of 5,000 new jobs. This print was a nice compliment to the 60,900 rise seen in the month of March. The employment rate fell to 5.7 percent. This was well below the 5.9 percent expected, and March print.
There is some not so good news here and would explain the overall muted reaction from the Australian dollar. Full-time employment fell, by 11,600 jobs. Part-time positions rose by 49,000.The overall labor participation rate held steady at 64.8%. The difference between the full-time and part-time led to a quiet AUD/USD response. This Forex market rose very slightly but stayed trading around the 0.7440 range area.
Australian data is watched by the RBA Closely
The Reserve Bank of Australia (RBA), has been clear in its last policy meeting minutes that monetary policy will be influenced by labor market progress. However, wages appear to be in the middle of a rather modest rise. This has been expected by the RBA. The central bank knows that it will not bring about a huge upward pressure on inflation.
The RBA will be happy with this latest labor market report and the strong employment levels. However, the central bank will want to see more evidence of strong job creation and is unlikely to make any monetary policy moves based on this latest release.