SYDNEY (Reuters) – Australian employment unexpectedly fell in August as full-time positions dropped back after a sharp rise in the previous month, while the jobless rate held steady in a sign the labour market was slowly softening.

The Australian dollar slipped 0.2% to $0.6637, while three-year bond futures rallied 3 ticks to 96.6.

The mixed report failed to move the dial on the policy outlook as investors upheld bets that the Reserve Bank of Australia would likely skip a move in interest rates this month, with a cut in November about 75% priced.

Figures from the Australian Bureau of Statistics on Thursday showed net employment fell by 5,400 in August from July, when it rose a revised 26,500. That was far below market forecasts of a 21,500 gain, while full-time jobs dropped 40,900.

Ann

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