Australian employment edged past expectations with a rise of 14,000 in July while the jobless rate surprised with a dip to 5.2 percent, leading investors to further pare the probability of more cuts in interest rates. The rise in total employed just beat forecasts of a 10,000 increase, while analysts had expected a jobless rate of 5.3 percent. Thursday's data from the government also showed full-time jobs increased by 9,200 in July, while hours worked in the economy rose a solid 0.8 percent.
"The labour market has ticked the box on the side that says the glass is half full," said Michael Blythe, chief economist at Commonwealth Bank. "It's obviously generating just enough jobs, despite losses in some areas, to keep unemployment constant." Earlier this week, the RBA held rates at 3.5 percent for a second month and sounded in no hurry to ease, saying the full impact of past cuts was still to be felt. The central bank has eased by 125 basis points since last November, with the latest cuts in May and June. There have been signs the stimulus is working, with retail sales beating expectations in both May and June.
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