Aussie jobs growth slows, dampens IR rises

The furious pace of jobs growth set in previous months slowed in June and the unemployment rate ticked up from 33 year lows.

Employment rose 2,500 in June after an upwardly revised 43,200 in May. The unemployment rate rose to 4.3% from the 33 year low of 4.2% registered in May easing pressure for a rise in interest rates.

In recent weeks there has been data suggesting that the economy whilst still powering on is taking a bit of a breather. Yesterday business confidence while still at historic highs came back 1 point on the NAB monthly business survey. Also yesterday total lending rose a modest 0.9% rebounding from the 10.6% slump in April.

Add to that the latest soft retail sales and housing numbers, lower consumer sentiment with the prospect of higher petrol prices and you have more reason for the RBA to remain on the sidelines for the rest of year.