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ANZ: Australia's Employment Drop Is Likely A One-Off

AUSTRALIA

ANZ write “Australia’s December labour market data came in weaker than expected but our view that the labour market will remain very tight over 2023 has not changed. With 444,200 job vacancies recorded in November (around double the pre-pandemic level) and businesses still in hiring mode, it’s hard to see a sharp rise in unemployment any time soon.”

  • “We still expect the cash rate to reach 3.85% in May. Next week’s Q4 CPI data will be more important for the RBA’s February meeting (see our preview) but today’s data will not convince the RBA to pause so soon. A few months of weakening data would be needed for it to be considered a turning point.”
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com

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