Australia’s unemployment rate holds at 4.4% in June as employment surges by 76.3K, exceeding forecasts and lifting the AUD.
The Australian Dollar climbed to a 10-day high against the New Zealand Dollar, trading near 1.2065, after June jobs data showed employment rose by 76.3K, beating expectations. The unemployment rate remained steady at 4.4%, reinforcing expectations of further tightening by the Reserve Bank of Australia.
Market pricing now reflects a 60% chance of a final 25bps rate hike by year-end, though analysts warn risks lean toward an extended pause. The NZD faced pressure from safe-haven USD demand amid US-Iran tensions, though RBNZ rate hike bets may limit losses.
The AUD/NZD cross extended its rebound from March lows, supported by upbeat labor data and RBA policy expectations.