Australia’s labour data is out and it’s a corker with 37,700 jobs created, mostly in full-time employment which rose 31,516.
That’s fantastic, and great economic news with so much monetary stimulus in the economy and an Aussie dollar well below 80 cents.
But the key takeaway from the data and the one that we’ve been focussed on here for many months now is that there have never been more Australian’s working than right here and now.
That’s 11,720,294 Australians who are working, earning income and spending it in the economy.
So with unemployment dropping to 6.1% and looking like it might have peaked for this cycle maybe, finally consumer confidence can start to rebound.
The big question of course is what this does to expectations about another rate cut by the RBA.
Sean Callow from Westpac tweeted that the market had slightly repriced the chances of a cut from 70% before the figure to 60% after jobs. But forex traders have taken the Aussie dollar up 0.7770.
So the jury is out. But if the Aussie climbs too high in the run up to the May meeting expect interest rate traders to increase their bets that the RBA will cut to drive the dollar down.