Canada: Broadly disappointing employment data – TDS

Analysts at TD Securities note that the Canadian economy added 54k jobs in July, beating expectations, though details were broadly disappointing.

Key Quotes

“Wage growth decelerated, full-time employment fell and the public sector was responsible for most of the jobs created.”

“However, this report has limited implications for the Bank of Canada. Even if details were better, the BoC would not feel compelled to respond to one month of strong job growth and the softer wages gives further incentive to look through headline employment.”

FX: The disappointment on wage growth was sufficient to offset the headline surprise for the loonie, leaving USDCAD little changed after an initial knee-jerk lower, however, global stress should keep AUDCAD under pressure.”