Australia's great re-balancing act

ABS jobs data for October caught the market by surprise with strong reported jobs creation pushing the rate of unemployment to 5.8%. The strong data backs up the RBA's glass half full rhetoric on the domestic economy which underpins their reluctance to cut interest rates. Chad Slater from Morphic Asset Management says there is a good chance that we have seen the bottom of a 'mini cycle' for interest rates. He does, however, highlight that history should serve as a reminder for how economies usually respond to a heavy shock t the terms of trade - such as the one caused by the mining downturn. "When you've had terms of trade shocks as big as this - you have always had a recession. History is not always the best way to view things but it gives you a quasi guide." In this video he discusses some of the sectors driving the Australia's economic rebalancing.