Australia’s job gains keep RBA hike expectations alive
The Australian economy added 76.3k jobs in June, exceeding the consensus estimate of 15.0k. This solid job growth keeps Reserve Bank of Australia (RBA) rate hike expectations alive.
The unemployment rate remained unchanged at 4.4% for the second consecutive month, with the participation rate rising to near a one-year high.
RBA cash rate futures now virtually fully price in a 25bps hike to 4.60% by year-end, up from roughly 60% before the data.
The AUD/USD is consolidating near 0.7000, with risks skewed towards a more extended RBA pause posing a headwind for the Australian Dollar.