Information from the Australian Bureau of Statistics (ABS) mirrored the resilience of Australia’s labor market amidst an elevated rate of interest setting.

The financial system added a internet 47.5K jobs in August, increased than the anticipated 28.0K improve and solely barely decrease than July’s downwardly revised 48.9K uptick.

The features got here largely from part-time employment although full-time jobs confirmed fewer losses than merchants priced in for the month.

Right here’s a breakdown of August’s numbers:

• A internet of 47.5K jobs have been added (vs. 28.0K anticipated) in August
• July’s internet additions have been revised decrease from 58.2K to 48.9K
• The labor power participation charge steadied at a report excessive of 67.10%
• Full-time employment fell by 3.1K (-7.0K anticipated)
• Half-time employment rose by 50.6K (35.0K anticipated)
• Month-to-month hours labored for all jobs elevated by 0.2% m/m increased from July

Hyperlink to Australian Labor Power Survey for August 2024

The employment-to-population ratio—a key metric for the Reserve Financial institution of Australia (RBA)—edged increased from 64.2% to 64.3%. That is just below the report excessive of 64.4% and alerts that staff who enter the labor power are nonetheless discovering jobs as “employers proceed to look to fill a greater than typical variety of job vacancies.”

Australian greenback vs. Main Currencies: 5-min

Overlay of AUD vs. Main Currencies Chart by TradingView

The Australian greenback misplaced floor in early Asian session buying and selling, probably as a result of U.S. greenback energy and lukewarm threat urge for food following the Fed’s 50bps rate of interest lower within the earlier U.S. session.

Nonetheless, the discharge of higher-than-expected job features, extra month-to-month hours labored, and the next employment-to-population ratio supported the RBA’s case in opposition to the necessity for a short-term rate of interest lower.

AUD shot up throughout the board on the information and maintained its bullish momentum for about thirty minutes earlier than steadying simply above its open costs.

The Aussie is presently posting the largest intraday features in opposition to protected havens just like the Japanese yen and Swiss franc and has the least pip benefit in opposition to the New Zealand and U.S. {dollars}.