Previous Trading Days Events 18 Jan 2024

According to yesterdays labour market report for Australia, employment fell sharply in December after two months of surprisingly strong growth, while the jobless rate held steady as fewer people went looking for work.

Employed people were less by 65.1K in December from November, from a way higher revised change of 72.6K the previous month. Market forecasts had been for an increase instead of around 17.6K.

The jobless rate stayed at 3.9. The participation rate dropped sharply to 66.8, from a record high of 67.3.

Source httpswww.reuters.comworldasiapacificaustraliaemploymentdives65100decjoblesssteady20240118

The Unemployment Claims figure was reported surprisingly lower yesterday. New Claims for unemployment benefits fell actually to the lowest level in nearly 112 years, coinciding with the recently reported hot labour market data. The figure was reported to be 187K and the market reacted immediately with USD appreciation at the time of the release. An unusual drop below 200K, the level that served as a support recently.

Economists said the data was consistent with a fairly tight labour market. Strong retail sales growth in December was also reported, making it difficult for the Federal Reserve to start cutting interest rates in March as financial markets anticipate.

The labour market remains strong and reinforces our view that the Fed is likely to hold rates at current levels until the middle of 2024, said Eugenio…