According to analysts at TD Securities, there is nothing in the Australia’s September Employment report that serves as a trigger for the RBA to cut the cash rate next month.
“Even though the headline print of +14.7k was close enough to the market's +15k f/c, the internals were more positive - full time jobs rose +26.2k, more than offsetting the prior month's drop and the unemployment rate dipped from 5.3% to 5.2% (thanks to a drop in the participation rate from 66.2% to 66.1%). More importantly the underemployment rate dropped from 8.5% to 8.3% in turn driving the underutilisation rate from 13.8% to 13.5% implying less spare capacity. The RBA can breathe a sigh of relief that a near term rate cut is off the agenda but the broader trend remains for spare capacity to edge higher.”
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