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Labor Market Report Gives Little Justification for December Interest Rate Cut in Australia, Says Commerzbank

BY MT Newswires | ECONOMIC | 11/13/25 09:36 AM EST

09:36 AM EST, 11/13/2025 (MT Newswires) -- The Australian labor market report for October, published overnight Wednesday, contained some positive surprises, said Commerzbank.

Job creation was more than twice what was expected, with over 40,000 new jobs being created, which contributed to a stronger-than-expected decline in the unemployment rate, wrote the bank in a note to clients.

This offset the unpleasant surprise from the previous month, when the rate unexpectedly rose sharply, stated Commerzbank.

A Reserve Bank of Australia interest rate cut in December is now highly unlikely, particularly given that inflation figures have also recently come in higher than expected, pointed out Commerzbank.

This is positive news for the Australian dollar (AUD), which appreciated slightly against the US dollar (USD) early Thursday, according to the bank. However, it should be noted that difficult months are still likely to follow.

A positive labor market report shouldn't distract from the fact that the economy is cooling while inflation remains high. This unfavorable combination will limit the AUD's upside potential in the coming months, it added.

MT Newswires does not provide investment advice. Unauthorized reproduction is strictly prohibited.

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