- Lowest jobless rate since 1974 sends RBA rate bets soaring – Bloomberg
Market news
Lowest jobless rate since 1974 sends RBA rate bets soaring – Bloomberg
“Australia’s hiring boom gathered pace in June, sending the unemployment rate to the lowest in almost 50 years and bolstering the case for a supersized interest rate hike next month,” said Bloomberg after Australia released June month’s employment data on Thursday.
Key quotes
The result spurred traders to start pricing in a 75-basis-point rate hike for August by the Reserve Bank of Australia, with bets rising to 47% from no chance before the data. Local bonds sold off, sending the three-year yield higher by as much as 19 basis points to 3.06%.
The data adds to the case for an oversized hike from the Reserve Bank of Australia at its August meeting. With inflationary pressures remaining elevated, we expect the RBA to continue with its rapid tightening pace.
Market reaction
With the firmer Aussie jobs report and increasing hawkish bets on the Reserve Bank of Australia’s (RBA) next move, AUD/USD grinds higher around 0.6775, up 0.21% intraday by the press time.
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