AUD/USD up, but has come back a little, on the blow-out Australian jobs report
Read full post at forexlive.com
A huge beat for the Australian labour market report:
I mentioned in that post the RBA want wage growth as well as employment growth to help lift inflation towards its target. The RBA target for the jobless rate is 4.5%, they expect that would prompt wage growth of 3 to 3.5% which in turn would lift inflation.
The 4.5% jobless rate may come sooner than the Bank forecasts, but will that be low enough to prompt wage increases? The RBA, and Governor lowe have both noted non-wage benefits are being used to entice employees to jobs. Perhaps its time for hedonic quality adjustment to wages as well as inflation!
Anyway, AUD/USD response:
