Australia's labour market defied expectations in July, with employment soaring by 58,200 positions, significantly outpacing forecasts.
While this robust growth is a positive indicator of economic resilience, it also poses challenges for the Reserve Bank as it seeks to tame inflation.
The unexpected jump in employment pushed the unemployment rate to 4.2%, slightly higher than the anticipated steady rate of 4.1%. This development adds complexity to the central bank's policy deliberations, as a tight labour market can exacerbate inflationary pressures. Despite the economy's sluggish performance in the second quarter, consumer spending has shown signs of improvement, further complicating the economic outlook.
At 11:30am, the S&P/ASX 200 is 0.23 per cent higher at 7,868.50.
The SPI futures are pointing to a rise of 31 points.
Best and worst performers
The best-performing sector is Communication Services, up 1.81 per cent. The worst-performing sector is Utilities, down 4.39 per cent.
The best-performing large cap is Netwealth Group (ASX:NWL), trading 5.03 per cent higher at $21.72. It is followed by shares in GQG Partners (ASX:GQG) and Meridian Energy (ASX:MEZ).
The worst-performing large cap is Origin Energy (ASX:ORG), trading 10.09 per cent lower at $9.53. It is followed by shares in Cochlear (ASX:COH) and Pilbara Minerals (ASX:PLS).
Commodities and the dollar
Gold is trading at US$2489.60 an ounce.
Iron ore is 3.1 per cent lower at US$95.25 a tonne.
Iron ore futures are pointing to a 2.5 per cent fall.
One Australian dollar is buying 65.98 US cents.
