Stronger than expected job data has reinforced the case for an interest rate rise next month.
According to the Australian Bureau of Statistics, employment grew by 49,500 to 11.324 million in September – beating forecasts of a 20,000 pick-up.
In Addition to the positive job data, Australia’s dollar also soared to a 27 year high of 99.18 overnight – its highest level against the US dollar since the currency was floated in December 1983.
This string of positive data has reinforced the case for a rate hike before year’s end.
Earlier this month NAB chief economist Alan Oster said continued improvement in the Australian labour market and some calming in international financial markets had induced the Reserve Bank of Australia (RBA) to prepare the market for a policy tightening this year.
“Until recently, Reserve Bank officials seemed to be signalling that interest rates were around average and growth was close to trend. There are now enough straws in the wind for us to believe that the tightening phase may well begin sooner rather than later,” he said.