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Analysts at Australia and New Zealand Banking Group Limited broke down last weeks key data releases.

Key Quotes:

“June NFPs rose 213k and May data were revised up marginally (244k vs 223k). Average hourly earnings were unchanged at 2.7% y/y and the unemployment rate ticked up to 4.0% (3.8%) as the participation rate rose 0.2%pts to 62.9%. Overall it was a solid report and there is no evidence of any let up in labour market strength despite the maturity of the business cycle and trade concerns. And despite no observable acceleration in wage growth, the momentum in the jobs data is still consistent with the Fed hiking in September.”

“The 2.6% m/m rise in German industrial production in May is in contrast to the slump in the PMI reading that month and indicates some potential divergence between the soft and the hard data. Manufacturing output rose 2.7% m/m following April’s 1.6% drop. The data caution becoming too negative on German output just now although trade tensions remains a major source of uncertainty.”