-Ivan Colhoun, ANZ chief economist
Australian labour market is this week's one of the main highlights, as policymakers have claimed the labour market is one the biggest headaches, hence, any improvement or deterioration will have a strong impact on the Aussie. The jobless rate is projected to remain unchanged at 6.0%, however, the economy is likely to add less jobs than it managed in February. The first report from the labour market looks promising, as the number of job advertisements climbed for a second straight month in March. The ANZ reported a 1.4% lead in the posted employment opportunities in the nation's capital cities. The figure follows February's positively revised 4.7% jump. Both internet and newspapers ads posted solid gains, advancing 1.3% and 4.5% respectively. The company has already claimed the labour market is finally strengthening. A pickup in the labour-intensive interest rates sensitive sectors like retail or construction, the number of jobs is likely to rise further.
In contrast, the central bank sees a further deterioration in the unemployment as demand for labour remain sluggish amidst the massive slowdown in the key mining sector. Nonetheless, the labour market can be approaching its turning point and the unemployment can reach its peak, as other fundamentals are pointing at broadening economic recovery, suggesting companies will be more willing to hire staff.
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