Australian employment unexpectedly fell in August, with full-time positions dropping after a sharp rise the previous month. Jobless rate held steady at 4.2%, still historically low. The Reserve Bank of Australia likely won’t change interest rates this month, but a cut in November is expected. Annual job growth slowed to 1.5%.

The Australian dollar slipped 0.2% to $0.6637, while three-year bond futures rallied 3 ticks to 96.6. The RBA has taken a cautious approach to policy easing, cutting rates in February, May, and August. Inflation is back in the target band of 2-3%, with focus now on the labor market. Unemployment rate expected to edge up to around 4.3%.

Leading indicators show solid labor demand with job ads above pre-pandemic levels. Business surveys are positive, and consumer spending is up as lower borrowing costs and tax cuts boost incomes. ANZ plans to cut 3,500 jobs in a major restructuring, while National Australia Bank will shed 410 jobs and move some overseas. Assistant governor at the RBA says they are close to achieving inflation and employment mandates, but risks remain in the economic outlook.

Read more at Yahoo Finance: Australia employment unexpectedly falls in August, jobless rate steady