FX.co ★ Australian Dollar Rises on Robust Jobs Report

The Australian dollar rose to approximately $0.644 on Thursday, recovering some of the losses sustained in the previous session, driven by unexpectedly strong employment data that suggest a more hawkish monetary policy outlook. Official statistics revealed that the Australian economy witnessed an increase of 89,000 net new jobs in April, pushing total employment to an unprecedented high of 14.64 million—substantially surpassing the anticipated 20,000. The unemployment rate remained unchanged at 4.1%, aligning with market expectations. Although it is still broadly anticipated that the Reserve Bank of Australia will reduce the cash rate by 25 basis points to 3.85% at its meeting next week, market participants have tempered their expectations for further rate cuts. The markets are currently factoring in a cumulative rate cut of approximately 76 basis points by the end of the year, a decrease from the 100 basis points anticipated just a few weeks ago. On the international front, investors continue to monitor developments in the US-China trade relationship, with a particular focus on the longer-term ramifications for global economic growth and trade dynamics.