The AUD/USD Forex market, and the Australian dollar in particular, rose this morning after the July labor sector data was released. The numbers were positive.
Australia added 14,000 positions. This was just shy of the 15,000 that was estimated. Also of consideration, the Australian unemployment rate held steady at 5.6 percent. This was, also, as expected.
This was a strong print for the Australian labor market, and investors cheered the news as it crossed the news wires earlier this morning.
Must of the gains is thanks to strong gains in the full time sector. This sector saw an increase of 62,000 new positions. This print, far outpace losses from the part time sector which saw a loss of 48,000 positions. To add to investor sentiment, Australia’s labor force participation rate inched higher with this report. The participation rate clocked in at 65 percent. This is its highest level in 1.5 years.
The Australian Jobs Data Supports the AUD
The Reserve Bank of Australia (RBA), is continuing its stance with a neutral monetary policy outlook. The financial markets are, right now, pricing in a better than even chance that the next official cash rate (OCR) hike will happen closer to April 2018. This data will not change the reserve bank’s policy path. The data also encouraged yield seeking capital flows, this morning. The AUD currency unit was a clear beneficiary.