RBA rate cut unlikely as soon as Feb - Scotiabank

Analysts at Scotiabank explained that the AUD is underperforming most of the G10 currencies following the release of weaker than expected employment data for January (-7.9K vs. +13K exp) with a jump in the unemployment rate from 5.8% to 6.0% and worrisome details with sizeable full-time job losses only moderately offset by part-time job gains.

Key Quotes:

"The deterioration in employment data follow a solid run of better than expected numbers through Q4 2015. Employment has figured prominently in recent RBA statements and minutes, with a specific focus on the extent of labor market slack and wages.

"The next RBA policy decision takes place Feb 29th, and only two of the 27 Bloomberg survey respondents look to a 25bpt rate cut from 2.00% to 1.75%."