Closing Bell 14th September: AU Unemployment surprises, Uranium Fuels ASX’s Rise

Australian Employment Surges in August

Australian employment figures for August have significantly exceeded expectations, with a reported increase of 64,900 jobs, far surpassing the anticipated 23,000. Despite this surge, the unemployment rate remained steady at 3.7%, according to the Australian Bureau of Statistics. This robust job growth strengthens the argument for the Reserve Bank to consider further interest rate hikes, especially in the context of a tight labour market. Michele Bullock, the incoming governor, has emphasized that any rate decisions will be heavily influenced by data. Bjorn Jarvis, ABS head of labour statistics, noted that the impressive August figures follow a minor decline in July, attributing it to the school holiday period. He highlighted that the average employment growth over the past two months aligns closely with the yearly average, standing at approximately 32,000 individuals monthly.

Australian Dollar Reacts to Jobs Report

Following the release of the better-than-expected August job report, the Australian dollar experienced a notable surge, reaching US64.53¢. This was a significant jump, especially considering that the job growth of 64,900 greatly outdid the economist’s forecast of 23,000. However, the currency did experience a slight dip later, settling at US64.41¢, marking a 0.3% increase for the day. This dip can be attributed to the release of a robust US inflation figure for August, which saw the Australian dollar drop to US63.79¢ overnight. In the bond market, yields showed a marginal softening, with the 3-year yield dropping by 1 basis point to 3.84%. The 10-year yield remained stable at 4.11%. Current bond futures suggest a 53% probability that the interest rates might have reached their peak at 4.1%.