FX.co ★ Aussie Dollar Rises After Solid Jobs Data

On Thursday, the Australian dollar climbed to approximately $0.655, reaching a two-week high, fueled by solid employment data that lessened the likelihood of imminent interest rate cuts. According to the Australian Bureau of Statistics, employment figures in October surged by 42,200, significantly exceeding projections, as the labor market saw an increase of 55,300 full-time positions. The unemployment rate decreased to 4.3%, surpassing expectations, and improved from a nearly four-year high of 4.5%, with the participation rate remaining steady at 67%. These strong figures corroborated the Reserve Bank of Australia’s stance that the labor market continues to be tight, leaving policymakers with little incentive to further ease the monetary policy after this year’s three rate reductions. As a result, market expectations for additional rate cuts dwindled, with the likelihood of a further cut by May 2026 plummeting to 32% from nearly 70% prior to the data release. This report also underscored stronger consumer demand and renewed confidence in the economy, reflecting signals of improving sentiment and a consistent recovery in the housing sector.