Australian jobless rate rises in April, erasing risk of rate hike

By Wayne Cole

SYDNEY (Reuters) - Australian employment rose by more than expected in April, data showed on Thursday, but the jobless rate still climbed to a three-month top as the growth in workforce outpaced job creation.

The jump in unemployment was seen as erasing any chance of a further rate hike from the Reserve Bank of Australia (RBA), a big swing from early in the month when the probability had been as high as 40%.

Markets now imply around a 54% chance of a cut in the 4.35% cash rate as early as December, cheering investors who were still celebrating a slowdown in U.S inflation and a revival of hopes for an easing in policy there.

Data from the Australian Bureau of Statistics showed net employment rose 38,500 in April from March, topping forecasts for a bounce of 23,700. All the gains were in part-time work, with full-time employment dipping 6,100.