TD Securities: Weak Australian Jobs Report to Keep RBA’s Wait-and-See Stance Unchanged

Prashant Newnaha, Senior Interest Rate Strategist at TD Securities based in Singapore, has mentioned that the overall tone of the Australian jobs report is weak, thus providing no reason for the Reserve Bank of Australia (RBA) to alter its wait-and-see approach.

The results of the jobs report align with the RBA’s observation of a slowing labor market and forward-looking indicators indicating a potential uptrend in the unemployment rate in the coming months.

Australia’s unemployment rate could approach or even exceed 4% in the upcoming months.

In the event of such a scenario, the RBA is likely to remain on hold for a considerable period, but the market won‘t be cautious about potential interest rate cuts next year.