On June 15, Australia’s employment situation in May exceeded expectations significantly, and the unemployment rate unexpectedly fell, supporting the bet that the Reserve Bank of Australia will raise interest rates further.
Data released by the Australian Bureau of Statistics showed that Australia added 75,900 new jobs in July, compared with expectations for an increase of 17,500, driven by full-time jobs.
The Australian dollar traded higher after the data. While the RBA’s 12 rate hikes over the past year are slowing demand in the economy, data on Thursday suggested they have more work to do.
RBA Chairman Philip Lowe has said the board will keep a close eye on the economy and inflation, warning that further rate hikes “may be needed” to curb persistent inflation.