FX.co ★ Australian Dollar Steady at 3-Month High

On Thursday, the Australian dollar remained stable at approximately $0.667, maintaining its proximity to a three-month peak. Investors are currently assessing recent labor market data for indicators that might influence the Reserve Bank's future monetary policy decisions. In November, the economy saw an unexpected loss of 21,300 jobs, marking the highest decline in nine months. This downturn was solely attributed to full-time positions, while a reduced influx of individuals into the workforce helped keep the unemployment rate unchanged at 4.3%. This weaker-than-anticipated data indicates a gradual softening of the labor market, leading traders to defer their expectations for interest rate hikes to the latter half of 2026, amending their prior predictions for May. Nonetheless, the central bank continues to perceive the labor market as tight, citing elevated job vacancies, widespread staffing shortages, rising labor costs, and signs that the economy is hovering near full employment. Meanwhile, the Australian dollar also received support from a weaker US dollar, following the Federal Reserve's decision to cut interest rates by 25 basis points. Additionally, Chair Powell's remarks after the meeting surprised markets that were anticipating a more aggressive stance.