June data shows a 0.2% drop in ANZ–Indeed Job Ads, signaling labor market cooling amid high borrowing costs and economic uncertainty.
AUD/USD retreated to around 0.6950 in Asian trading Tuesday, reversing two days of gains. The decline follows a 0.2% month-over-month drop in Australia’s ANZ–Indeed Job Ads for June, wiping out May’s revised 2.0% increase and marking the third monthly decline this year.
The labor market slowdown aligns with broader economic weakness, including a 0.4% fall in the Melbourne Institute Monthly Inflation Gauge for June. This second consecutive monthly decline suggests easing domestic cost pressures, though traders remain cautious ahead of key inflation data from China, Australia’s largest trading partner.
Despite the soft data, the AUD may find support from a weaker USD and expectations of further RBA rate hikes. The central bank’s June minutes and Governor Michele Bullock’s hawkish tone underscored concerns over persistent inflation, keeping policy tightening in focus.