FOREX: Aussie mood lifted by healthy jobs data

The Aussie received a minor boost overnight from the latest jobs data, which showed that employment jumped by 23.4K in June, higher than expected. Although the headline figure helped to allay some fears of a stalling recovery, it is important to put these figures into context. Firstly, jobs’ growth in the second quarter actually fell by 5,400, no doubt pulled down by a delayed response to the devastating floods in both Queensland and Victoria earlier this year. Secondly, the unemployment rate has essentially remained at or just under 5.0% this year, suggesting that jobs growth is just keeping pace with new labour market entrants. Indeed, these employment numbers do not make a meaningful contribution to the debate about the economy’s trajectory. Earlier this week the RBA suggested that the economy would struggle to deliver the 4.2% growth expected for this year. It is a bumpier ride for the Australian economy these days.(FxProNews)