Analysts at National Australia Bank (NAB) offer their expectations on Thursday’s Australian labor market report and its implications for the Reserve Bank of Australia (RBA).
Key Quotes:
“Thursday’s labor market data are key for financial markets given the RBA’s repeated emphasis on the importance of the unemployment rate for near-term policy.
NAB is forecasting a strong report given the employment boost from temporary workers hired to run the federal election. We expect employment grew by 40k and the unemployment rate ticked down to 5.1% in May.
If we are wrong and unemployment increases again, then the market would price in the risk of a July rate cut.”
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