US Jobs Report Falls Short, RBA Decision in Focus

The US jobs report for July fell short of expectations, casting doubt on the Federal Reserve's plans to raise interest rates. Headline payrolls decreased by 23,000, down from the predicted gain of 80,000.

Additionally, average wage growth came in below forecasts at 3.2% year-over-year and 0.1% month-over-month, while the unemployment rate dropped to 4.1%, but this was largely due to a shrinking labor force.

The weak jobs data has led to a dovish repricing of the OIS curve, with year-end Fed rate pricing now at 17 bps of tightening, down from 22 bps previously.

Looking ahead, investors will be keeping a close eye on the Reserve Bank of Australia's decision tomorrow, as well as key inflation data releases this week, including the US July CPI report on Wednesday and UK June GDP numbers on Thursday.