Australia’s unemployment rate rose more than expected in July as the economy surprisingly shed jobs, signaling the labor market may be approaching a turning point and sending the currency lower.
The jobless rate climbed to 3.7% from 3.5% a month earlier, having hovered in a range of 3.4%-3.7% since June last year, Australian Bureau of Statistics data showed Thursday. The economy lost 14,600 roles, confounding estimates for a 15,000 gain.
The data cements the case for the Reserve Bank to stand pat at 4.1% for a third straight month at its Sept. 5 meeting following 12 interest-rate increases. Money markets scaled back bets on further tightening, sending the Australian dollar and government bond yields lower.
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