RBA : distinction between full-time and part-time work less important? - UOB

With the markets awaiting the jobs report today there as an interesting twist the RBA minutes earlier in the week although of which analysts at UOB reminded us that the event hardly had any effect on the AUD or the Australian markets. 

Key Quotes:

"In the minutes, the RBA judged that the steady rates remain consistent with achieving sustainable growth and inflation target. It noted that developments in labour and housing markets warrant “careful monitoring” but it also expected low wage growth and strong retail competition to continue to have “dampening effect” on aggregate inflation."

"The RBA March quarterly inflation increased confidence in forecasts that core inflation would pick up to around 2% by early 2018. The minutes reiterated the view that a rise in AUD would complicate economic adjustment. 

Recent data suggests Australian economy expanded at a “moderate pace” in March quarter although the RBA warns that there is “significant uncertainty” about how to measure degree of spare capacity, given high levels of underemployment in recent years. The RBA also noted that the distinction between full-time and part-time work had become less important in assessing labour market conditions."

Note:

Aussie traders are awaiting the Australian jobs report that will be released on Thursday at 01:30 GMT. The employment change is expected to be positive by 5K and the unemployment rate to remain unchanged at 5.9%. 

AUD/USD inter-market: Risks further downside on Aus jobs