SYDNEY (Reuters) -Australian employment surged in October as firms took on more full-time workers, pulling the jobless rate down from a four-year high and bolstering a growing view that the current easing
cycle may have run its course.
The strong report sent the Australian dollar up 0.3% to a ten-day high of $0.6560, while three-year government bond futures tumbled 8 ticks to 96.20, the lowest in over seven months.
Markets moved to price out the chance of any more policy easing next year, with the probability for a May cut collapsing to 32%, down from nearly 70% before the data.
Figures from the Australian Bureau of Statistics on Thursday showed net employment rose 42,200 in October from September, when it increased 12,700. That was far above market forecasts of a 20,000 gain, while full-time jobs rose 55,300.
The jobless rate eased back to 4.3% from 4.5%, which had been the highest reading since November 2021. The participation rate held steady at 67%, while hours worked rose another solid 0.5%.
The Reserve Bank of Australia held interest rates steady this month after three rate cuts, saying it was cautious about easing further given higher inflation, firmer consumer demand and a revival in the housing market.
It does not expect the labour market to loosen much from here, with the jobless rate forecast to hover at 4.4% for the foreseeable future.
The robust jobs added to a slew of upbeat data suggesting there was little urgency for the RBA to cut interest rates anytime soon as policymakers debate whether the current cash rate of 3.6% was restrictive.
Business surveys are generally upbeat and the consumer mood turned optimistic for the very first time in nearly four years as lower borrowing costs and past tax cuts feed through to incomes.
(Reporting by Stella Qiu; Editing by Jacqueline Wong and Shri Navaratnam)
