FX.co ★ Australian Shares Hit Two-Week Low

The S&P/ASX 200 experienced a 0.8% decline, falling to approximately 8,745 on Thursday, marking a two-week low. This downturn can be attributed to investor caution ahead of an important employment report that could influence the Reserve Bank of Australia's (RBA) policy direction. Expectations for Australia's employment report in August include the creation of 22,000 new jobs, while the unemployment rate is anticipated to remain at 4.2%, with participation rates steady at 67%. The market forecasts a cautious stance by the Australian central bank during its meeting on September 29–30, with interest rate swaps indicating little likelihood of a rate cut in September, and the probability of a cut in November reduced to 70%. On the other hand, the US Federal Reserve cut interest rates on Wednesday as widely anticipated, but investor sentiment remained subdued as they considered revised economic projections. Fed Chair Jerome Powell described it as a ‘risk management cut,’ with the dot plot suggesting two further cuts this year. In Sydney, energy stocks were the hardest hit, declining by 5.4% to their lowest point since June 13. This drop was led by Santos, which plummeted 13.6% after ADNOC retracted its $18.7 billion offer, and Woodside also experienced a 4.6% fall amid weakening oil prices.