Australian Unemployment Falls to 2-1/2 Year Low; Rate Bets Drop

Australia’s jobless rate unexpectedly fell to the lowest level in two-and-a-half years in March, reflecting a lift in business confidence and signaling the central bank is unlikely to ease policy in the near-term.

The stronger labor market is a boost for Prime Minister Malcolm Turnbull, who is struggling in opinion polls in an election year. It’s also further evidence that record-low interest rates are aiding a revival in industries like construction, tourism and education as a resource boom winds down. Still, the outlook for business investment remains weak and the outlook is clouded in China, Australia’s biggest trading partner.