GBPAUD

Australia Employment Data

• Economy adds 15.5K jobs, beats forecast of -4.8K drop (+20.3K upside beat).
• Look at it closer,
  Full time work: -10.5K
  Part time work: +26.0K.
• Unemployment Rate fell to 4.9% from 5.2% Forecast was an increase to 5.3%.

What explains this big drop? The number of people looking for work (full time) fell by 22K and the number of people looking for work (part time) fell by 6.8K.

It’s a positive report for the AUD from fundamental perspective – in that economy added jobs and unemployment rate fell – but underneath the data is not that great.

UK – Bank Of England Pauses QE Program

• The BOE Monetary Policy Committee, with new quarterly economic forecasts (to be published next week) on hand, halted their QE program at £325 billion.
• Bank more concerned with inflation, and expectations around inflation (that the BOE isn’t doing what’s necessary to get inflation back to target).
• Mervyn King, will defend the actions at a presser on May 16th, and will face questions from lawmakers in coming weeks.
• Confirms what we have seen in GBP (strength) over the last 2 months.

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