Australia’s robust June employment figures lift expectations for a Reserve Bank of Australia rate increase to 4.60%.
The Australian dollar steadied near 0.7000 against the USD following stronger-than-expected June employment data. The report reinforced market expectations for a Reserve Bank of Australia rate hike, with cash rate futures now fully pricing in a move to 4.60%.
Prior to the release, RBA hike probabilities had been elevated but not fully priced. The June jobs gain builds on recent labor market resilience, contrasting with softer prints in other major economies. Markets are now assessing whether the RBA will act as soon as its next meeting.
AUD/USD showed limited volatility post-data, consolidating around key technical levels as traders await further signals from the central bank.