Employment Numbers

The recovery in Australia continues to power on. Yesterday's employment figures showed a bumper 46,000 extra people found jobs in June - this was three times expectations by the market. The unemployment rate was 5.1% - the lowest since Jan 09. Consequently, much of the rally in rates over the last few weeks was unwound by the market yesterday as talk of rate hikes was put back on the table. The next rate hike is still likely to be some months away. ANZ for instance considers the area where the rate starts to impact on inflation (and therefore rates) is 4.5% - 4.75%

US
Some comfort was felt in the US overnight from a reduction in US Jobless claims for last week of 21,000 to 454,000