US Jobs Data Comes in Below Expectations

• Australia’s trade account swung into an AUD 3.02 billion deficit in May against market expectations of a AUD 2.2 billion surplus – a significant downturn that surprised the market.
• It is only the second deficit posted this year and the deepest since December 2015, with the balance deteriorating from both sides of the ledger.
• Falling export values were the primary culprit, with gold and metal ores and minerals shedding AUD 3.2 billion in value over the month, while a concurrent rise in imports added further pressure to the bottom line.
• June nonfarm payrolls came in at 57,000, well short of the 113,000 consensus, with downward revisions to the prior two months totalling 74,000.
• The unemployment rate dipped to 4.2% from 4.3%, though participation slipped from 61.8% to 61.5% over the same period, tempering the headline improvement.