Will the positive jobs data send the ASX past 6000 points?

Commonwealth Bank of Australia (ASX:CBA), Westpac Banking Corp (ASX:WBC), Australia and New Zealand Banking Group (ASX:ANZ) and National Australia Bank Ltd. (ASX:NAB) are all surging higher today.

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The latest job figures show that unemployment has fallen from its 12-year high of 6.4 per cent, easing to 6.3 per cent in February following the Reserve Bank of Australia's decision to slash interest rates by 25 basis points.

According to the Australian Bureau of Statistics data, 15,600 more people were employed in February compared to January. 10,300 of those were full-time positions, while 5,300 were for part-time roles.

Unfortunately however, economists believe the recovery will only be temporary with many analysts forecasting further increases in unemployment through 2015. In fact, Alan Oster, Chief Economist for National Australia Bank, believes unemployment will hit 6.7 percent this year following the bank's latest business confidence survey.

The fact is confidence remains low in Australia and businesses are becoming much less willing to spend – even despite the Reserve Bank's efforts to ease monetary policy. A further one or two interest rate cuts are expected over the coming months.

The market reacts

While foreign exchange traders rewarded the local currency immediately after the results were released, the Australian dollar has since retreated, hitting a new six-year low of just US 75.74 cents.

However, the positive figures have certainly been well received by equity investors who have pushed the S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) more than 1% higher. While the gains have been widespread, the country's biggest banks are doing the heavy lifting with Commonwealth Bank of Australia (ASX: CBA), Australia and New Zealand Banking Group (ASX: ANZ), National Australia Bank Ltd. (ASX: ANZ) and Westpac Banking Corp (ASX: WBC) all up more than 1.3%.

Telstra Corporation Ltd (ASX: TLS) and Macquarie Group Ltd (ASX: MQG) have also risen 1.3% and 3.4% respectively.

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Motley Fool contributor Ryan Newman does not own shares in any of the companies mentioned. You can follow Ryan on Twitter @ASXvalueinvest. The Motley Fool’s purpose is to help the world invest, better. Click here now for your free subscription to Take Stock, The Motley Fool’s free investing newsletter. Packed with stock ideas and investing advice, it is essential reading for anyone looking to build and grow their wealth in the years ahead.  This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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