Australia’s 10-year government bond yield fell slightly to 4.54%, tracking a decline in U.S. bond yields after recent U.S. economic data suggested that the Federal Reserve might continue easing monetary policy this year. Meanwhile, domestic investors are still implying around a 70% chance that the Reserve Bank of Australia will cut rates at its February meeting, despite latest data pointing to a strong job market. In December, the economy added a remarkable 56,300 jobs, far exceeding the expected 15,000 and the previous month’s figure of 28,200. The unemployment rate edged up to 4% from November’s 3.9%, in line with forecasts. Overall, the data highlighted the labor market’s resilience, despite challenges posed by high interest rates. The upcoming quarterly inflation report and retail sales data, both set to be released before the RBA's decision, will offer further insights into the health of the economy and be crucial for investors in assessing the central bank’s next policy move.
You are viewing a single comment's thread from: