FX.co ★ Aussie Dollar Rallies Over 2-Week High

The Australian dollar strengthened to approximately $0.656 on Thursday, marking its third consecutive session of gains and reaching its highest level in over two weeks. This rise followed a robust employment report indicating resilience in the labor market. Australia's unemployment rate decreased to 4.2% in July from 4.3% in June, aligning with forecasts and reversing last month's peak, which was the highest since late 2021. This decline was attributed to a reduction of 10,200 in the number of unemployed individuals, bringing the total to 649,600, while employment rose by 24,500 to 14.64 million—just below the expected increase of 25,000. This data emerged after the Reserve Bank of Australia decided to cut interest rates in August, attributing the decision to easing inflation and a recent uptick in unemployment. However, the current employment figures indicate a persistently tight labor market, leading most economists to anticipate that the central bank will likely hold off on any further rate changes until November, when additional quarterly inflation data becomes available. Meanwhile, the weakening US dollar, driven by growing speculation of a potential Federal Reserve rate cut in September, further supported the Australian currency's upward movement.