Employment gains slowing
The headline result for US non-farm payrolls was a bit better than markets expected, with +261,000 of gains in October, and revisions to preceding months adding a further +29,000 of a net basis.
The 3-month average payrolls gain slowed from +381,000 to +289,000.
So the increases are slowing, but still pretty strong for now.
The participation rate ticked lower to 62. 2 per cent, and the unemployment rate increased from 3.5 per cent to 3.7 per cent.
The growth in average hourly earnings also slowed from 5 per cent over the year to 4.7 per cent.
Early signs here, then, that aggressive monetary tightening was starting to work by October.
Given that the Federal Funds rate wasn't lifted to above 1 per cent until June, it's obviously going to take some time for a 4 per cent funds rate to really slam these figures.
Households survey metrics have turned negative, way down from the heady levels of last year.
Layoffs are beginning to gather pace, particularly in the tech sector where sentiment has plunged in the face of higher risk-free rates.
Still, the humiliated Fed appears likely to keep going with hikes next month, until something in the US economy really blows up in earnest.
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The allegedly 'collapsing' Aussie dollar is trading back up at around 65 US cents this morning, a level unchanged from a month earlier.
Presumably this reflects the as yet unfounded rumours concerning China's imminent reopening.
Not holding my breath on that one...a dystopian shitshow.
