FX.co ★ Australian Dollar Holds Gains

On Monday, the Australian dollar remained steady at approximately $0.655, following a 0.6% increase on Friday driven by the decline of the US dollar due to a lackluster jobs report. Recent statistics indicated that US employers hired fewer individuals than anticipated in August, signaling a slowdown in the labor market. This development has heightened expectations that the Federal Reserve might initiate interest rate cuts later this month. In Australia, the economic calendar is relatively sparse, with investors eagerly anticipating significant indicators such as building permits, housing approvals, consumer confidence, and inflation expectations, along with a speech from an official of the Reserve Bank of Australia. Last week's robust domestic economic data led markets to adjust their expectations of further monetary easing by the RBA. Market pricing currently suggests an 80% likelihood of a 25 basis point interest rate reduction in November, down from a previous certainty of 100%.