The economists of Commerzbank analyze the outlook for the AUD following the disappointing employment data in Australia.
Risk increases that RBA starts cutting rates sooner rather than later
Employment figures in Australia were much worse than expected. With job losses of around 65,000, the report was the worst since the peak of the coronavirus pandemic. However, there are also some less negative signs. The unemployment rate has remained constant, thanks to the sharp drop in the activity rate.
The latest figures certainly increase the risk that the RBA will start cutting rates sooner rather than later.
However, The quarterly inflation figures that we will receive in less than two weeks will probably be decisive. Until then, the Australian dollar is likely to remain on hold.
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
