AUSTRALIAN DOLLAR DECLINES ON WEAK LABOR DATA, US DOLLAR HITS YEARLY HIGH
- AUD/USD declines with the rising US Dollar as Australian employment data disappoints.
- Sluggish job growth and unchanged Unemployment Rate at 4.1% reduce inflation fears in Australia.
- Markets might start to bet on a less aggressive RBA.
The AUD/USD declined by 0.34% to 0.6470 in Thursday's session, extending its decline to a fresh three-month low of 0.6460. The US Dollar is easing after mixed data, while weak Australian employment data has reduced inflationary concerns, which might change the outlook of the Reserve Bank of Australia (RBA).
Lately, the AUD declined against the strengthening USD, driven by positive US economic indicators and increased confidence following Donald Trump’s presidential election. Despite a neutral stance from the RBA, the central bank hinted at a possible rate cut in May 2025. The overall price action indicates that the AUD/USD pair may continue its downtrend, with the DXY reaching new yearly highs, putting pressure on risk-related currencies like the AUD.
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