Australian jobs to add pressure to RBA´s neutral stance? - RBS

FXStreet (Bali) - Brian Daingerfield, FX Trading Strategist at RBS, notes that any setback to the pace of full-time employment growth in Australia may add pressure to the RBA’s new-found neutral stance.

Key Quotes

¨The AUD has outperformed, most notably against the NZD, after the RBA took on a more clearly neutral stance post its 25bp rate cut this week. Key to the more neutral stance was the notable improvement in both employment and household demand over the past six months.¨

¨Australia releases April employment tonight, and full-time employment has been a bright spot, rising in five of the past six months by a net 114.6K. A pullback in the pace of full-time employment growth may add pressure to the RBA’s new-found neutral stance.¨