Jobs Data Disappoints, Space Nudges Higher

YM +1.5 & XM +1.0 in Sydney, with modest firming seen on the back of the disappointing headline fall in the number employed within the latest Australian labour market report, bringing to an end an impressive run of generally stronger than expected monthly releases. Still, it wasn't all doom and gloom, with no clear signs of any impact from the cessation of the JobKeeper scheme (per the ABS commentary flagged in an earlier bullet). It is interesting to note that the ABS flagged that "like we saw in January, the number of people taking leave over the Easter public and school holidays was also higher than in the past," with April's losses in employment driving solely by a fall in the number of part-time employed, which may be limiting the follow through from the release. Elsewhere, the participation rate edged lower ( afunction of those leaving part time roles?), which actually allowed the unemployment rate to tick lower, even as the number employed dipped. The underemployment rate now sits at levels not witnessed since the middle of '14, while the underutilisation rate hovers around Dec '19 levels.

• Note, there had been some bearish setup via YM single-day options ahead of the release.
• Finally, the RBA conducted its latest round of schedule ACGB purchases.
• Friday's local docket consists of A$800mn of ACGB 0.50% 21 September 2026 supply, the release of the weekly AOFM issuance slate, as well as preliminary retail sales data and the flash PMI surveys.