SYDNEY, April 18 Reuters Australian employment fell in March after an enormous gain the month before while the jobless rate resumed its uptrend, a sign that the relatively tight labour market was still on track to loosen, albeit at a slower pace.

Market reaction to the data was largely muted. The Australian dollar initially dipped after the data before recovering to 0.6440, while threeyear bond futures held at 96.1.

Markets, which had already slashed bets of rate cuts this year, are still confident rates have peaked. Monetary easing is a long way away though, probably in December.

Figures from the Australian Bureau of Statistics on Thursday showed net employment dropped 6,600 in March from February, when it rose a revised 117,600. Market forecasts had been for a small gain of 10,000 after a blockbuster February.

Fulltime employment rose 27,900 in March. The jobless rate climbed slightly to 3.8 from 3.7 the previous month, although that was under a forecast of 3.9.

Analysts say the March data provides a clearer read on the current labour market conditions as the influence of large seasonalled statistical changes smoothen out.

The small drop in employment in March followed a largerthanusual flow of people into employment in February… However, in March, the flows into employment had returned to a more usual pattern, said Bjorn Jarvis, ABS head of labour statistics.

The labour market remained relatively tight in March.

The Reserve Bank of Australia has left…