Recovery in Australia Employment to Encourage AUD/USD Rebound

Why Is This Event Important:
Signs of stronger job growth may encourage the Reserve Bank of Australia (RBA) to carry the current policy into 2017 as ‘members observed that some indicators of domestic inflation cost pressures, such as growth in the wage price index, had stabilised, albeit at low levels, and that underlying inflation was expected to return to more normal levels over time.’ In turn, Governor Philip Lowe and Co. may largely endorse a wait-and-see approach in the year ahead, but another dismal employment report may put pressure on the
RBA to further insulate the real economy as ‘members observed that there was uncertainty about the degree of spare capacity in the labour market and how this might ultimately affect inflationary pressures.’
Expectations: Bullish Argument/Scenario

Release	Expected	Actual
ANZ Job Advertisements (MoM) (OCT)	--	1.0%
AiG Performance of Manufacturing Index (OCT)	--	50.9
NAB Business Confidence (3Q)	--	5

Increased outputs paired with the uptick in business confidence may spur a meaningful rebound in Australia employment, and an upbeat employment report may trigger a bullish reaction in AUD/USD as it boosts the economic outlook for the region.