FX.co ★ Aussie Dollar Holds Decline After Softer Jobs Data

The Australian dollar hovered around $0.665 on Thursday, maintaining its decline from the previous session, as markets processed a domestic jobs report that fell short of expectations. The data revealed that net employment decreased by 5,400 in August, contrary to predictions of a 21,500 increase, with a notable reduction of 40,900 in full-time positions. Despite holding steady at 4.2%, the unemployment rate, alongside a slight dip in the participation rate to 66.8%, reflects a gradually softening labor market. Even with the disappointing figures, the market currently suggests only a 20% probability of the Reserve Bank of Australia cutting rates at the forthcoming September 30 meeting, though this likelihood rises to 70% for November due to persistent inflationary pressures and policymakers' cautious stance. Concurrently, in the United States, the Federal Reserve executed an anticipated quarter-point rate cut and projected two more reductions this year, limiting further cuts to just one in 2026. Fed Chair Jerome Powell emphasized a prudent 'risk management' strategy with no urgency to ease monetary policy further.