Australia’s unemployment rate held at 4.4% in June as employment rose by the largest margin in 12 months, fueling bets on an RBA rate hike.
Australia’s economy added the most jobs in a year in June, pushing AUD/USD higher as the unemployment rate remained steady at 4.4%. The gain exceeded forecasts, keeping the door open for an August rate hike by the Reserve Bank of Australia, though only slightly.
Expectations had centered on a 4.4% unemployment rate, matching both the prior month and consensus estimates. The strong jobs data contrasts with recent signs of economic softening, adding pressure on policymakers to address inflation.
The Australian dollar jumped following the release, reflecting market repricing of RBA policy expectations. Oil prices also held near six-week highs amid escalating Middle East tensions, further influencing currency and commodity markets.