What does Waltzing Matilda mean?

The phrase Waltzing Matilda is believed to have originated
with German immigrants who settled in Australia.
Waltzing is derived from the German term
auf der walz which meant to travel while learning a trade. Young apprentices in those days travelled the country working under a master craftsman earning their living as they went - sleeping where they could.
Matilda has Teutonic origins and means Mighty Battle Maiden. It is believed to have been given to female camp followers who accompanied soldiers during the Thirty Year wars in Europe. This came to mean "to be kept warm at night" and later to mean the great army coats or blankets that soldiers wrapped themselves with.
These were rolled into a
swag tossed over their shoulder while marching.
So the phrase Waltzing Matilda came to mean: to travel from place to place in search of work with all one's belongings on one's back wrapped in a blanket or cloth. This is what Swagmen did in outback Australia.

From: http://www.ozramp.net.au/~senani/waltz.htm