Australia's jobs data mixed, slide in full-time employment offset by an unusually large rise in part-time employment

A report released during Asian session on Thursday showed that Australia added more than 26,000 new jobs during July and the unemployment rate declined from 5.8 percent to 5.7 percent. Data was in line with the scenario developed by the Reserve Bank of Australia (RBA), which expects unemployment to hover around 5 ¾ percent in the next few months.

On the face of it, the Australian labor-market data for July painted a bright picture, but details were more mixed. A sharp rise in part-time employment has pushed the unemployment rate down to 5.7 percent, disguising a continuing slide in the number of Australians employed full-time. Full-time employment has slid 64,500 since December while part-time employment has surged 136,600.

"With more than 86 per cent of total net jobs created over the last 12 months part-time, it is clear that Australia is becoming a nation of part-time employment growth with all the attendant negative consequences," said Bill Mitchell, director of the Centre of Full Employment and Equity at the University of Newcastle.

A better-than-expected Australian jobs report helped the AUD/USD pair to maintain a strong bid tone and reclaim 0.7700 handle. The Aussie has gained over 13 percent against the dollar since the beginning of the year. Australia's inflation and growth might be in danger from a firmer AUD. In addition to inflation and growth, it is always worthwhile to pay attention to the exchange rate. And as the AUD appreciates the probability increases that the RBA cuts its key rate once again.