Australia ANZ jobs advertising slows in December for first time since July 2016

Australia’s ANZ jobs advertising slowed in December for the first time since July 2016, snapping previous month rise. The ANZ in its report mentioned that the Job advertisements fell 1.9 percent m/m in December, down from 1.6 percent in November. On an annual basis, it also fell 3.7 percent y/y, down from 6.0 percent y/y in November.

In trend terms, job ads rose 0.3 percent m/m in November, a touch lower than the 0.4 percent rise in the previous month. Annual growth remained stable at 4.7 percent y/y in the month of December, but has fallen sharply from an average of 9.4 percent y/y over the first quarter of 2016, ANZ reported.

While a disappointing outcome, we see the labour market as losing some of its previously strong momentum not stalling. Indeed, ANZ job ads rose by 0.5 percent over the fourth quarter and in trend terms continue to rise.

While the labour market has clearly lost some momentum, business and consumer confidence remain elevated, capacity utilisation appears to be on the rise, and retail sales have strengthened recently. As such, we continue to expect conditions in the labour market to support an ongoing, albeit gradual, decline in the unemployment rate this year.

Meanwhile, the New Zealand’s benchmark S&P/NZX50 Index closed 0.60 percent higher at 7,012.74. While at 06:00 GMT, the FxWirePro's Hourly New Zealand Dollar Strength Index stood neutral at -63.40 (lower than -75 represent a bearish trend).