VIEW: ANZ write "despite an employment....>

AUSTRALIA: VIEW: ANZ write "despite an employment gain of 28.4k in April, the

unemployment rate increased to 5.2%. Increased labour supply drove the rise in

the unemployment rate, with the participation rate at its highest result on

record. The rise could be interpreted as the product of a healthy labour market.

On the downside, full-time jobs went backwards by 6.3k. From the RBA's

perspective, unemployment and underemployment are heading in the wrong

direction. The increased slack in the labour market will not help progress

towards its inflation target. Coupled with the soft employment component of

Tuesday's NAB survey, a June rate cut must be a distinct possibility. We will

wait until we see what the RBA Governor has to say on Tuesday before we make a

call."