The Australian labor market report due out on Thursday, October 15 at 00:30 GMT could pave the way for further interest rates cuts by the Reserve Bank of Australia (RBA), as the central bank’s focus remains on the jobs market and inflation. Heading into the jobs report, AUD/USD remains pressured below 0.7200, FXStreet’s Dhwani Mehta briefs.
Key quotes
“The market expects 35K job losses in September, pricing in the impact of Victoria’s Stage 4 restrictions to contain the virus spread. The Unemployment Rate is expected to tick higher to 7.1% from 6.8% in August, although is likely to remain below the levels seen in June and July. The Participation Rate is seen steady at 64.8% last month, not painting a favorable picture of the aussie jobs market.”
“A slowdown in the jobs market recovery would need the RBA to accelerate its efforts to achieve its employment objective, implying that a rate cut could be on the table next month.”
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