Australian Markets Weekly: Employment growth keeps defying the doomsayers

The wild start to 2016 has continued in the past week. Equities, commodities, commodity currencies, and yields are all lower.

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Employment growth keeps defying the doomsayers

  • The crazy start to 2016 continues with equities lower, commodities lower, commodity currencies lower
  • NAB has nudged its AUD FX forecasts down slightly, now seeing A$/US$ 0.67 by end Q1 and 0.66 by mid-year, before a mild recovery in H2 2016
  • Australian jobs data continues to surprise, even if the underlying pace of growth is likely to be slightly softer than the official figures suggest
  • Despite volatility in the jobs data, the jobs data do align with other indicators of the labour market, supporting the RBA’s recent optimism on the economy
  • The unemployment rate probably gives a better read of the labour market – and is not impacted as much by sampling issues
  • A quiet week ahead for Australian data with only monthly Consumer sentiment likely to draw interest

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