Australian share market (ASX) closed weaker after better than expected jobs data. The market was expecting a subdue employment data. With this numbers, it is unlikely that the Australian Reserve Bank cut interest rate any further.
“Some companies are hiring, others are off loading labour force. It would be interesting to know in what sector most of the new employment occurred”
The Australian index lost 60.2 and is still above the 5000 mark. The current downwards move, leave the index in dangerous position. A possible correction could be due after a 7 month rally where the index has gained nearly a thousand points.
Another factors pushing lower the index was iron ore prices. Iron ore prices are lower, so were Rio Tinto and BHP. Both companies were boosting the iron ore production because prices rebounded early this year. Now prices are expected to average around $120-$130 per tonne and go lower to in 2014-15.
This leave the market oversupply and mining company would has to reduce output. This could add pressure to the Australian economy.
ASX technical indicators signalling strong sell.