Unemployment held at 4.4% as the economy added 76,000 jobs. The currency hit a two-week high. Next week's CPI print is the real test for another rate hike.
The Australian dollar pushed above U.S. 70 cents on Thursday after a jobs report that blew past every forecast. The currency traded at $0.7015, a two-week high, before settling near that level through the afternoon session.
Australia added 76,000 jobs in June. Economists had expected roughly 20,000. The unemployment rate held at 4.4%, the Australian Bureau of Statistics said. Of the new positions, 47,000 were part-time.
ABS head of labour statistics Sean Crick said part of the surge reflected people who had delayed starting new jobs during May. The participation rate rose to 67%, keeping the jobless rate steady even as about 13,000 Australians lost employment.
The labour market's resilience puts pressure on the Reserve Bank as it tries to return inflation to its 2-3% target. Economists said next week's June-quarter CPI print would be the decisive test. Some now expect another rate increase this year, with tight labour conditions limiting the central bank's room to ease.
The RBA has previously argued there is little evidence of a wage-price spiral, despite recent increases in award wages. The stronger data shifts the burden onto the inflation report to justify holding rates steady.
For more on the broader market impact, see AlphaScala's market analysis. The RBA (RB GLOBAL INC.) carries an Alpha Score of 37, labelled Mixed, in the Industrials sector.
Prepared with AlphaScala editorial tooling from the source reporting linked above. Indexable analysis may include a cited Alpha Score value. Publishing checks screen each story before release. Educational coverage, not personalized advice.