US initial jobless claims dipped to 226,000, reinforcing labor market resilience and bolstering the Federal Reserve’s cautious stance on rates.
The AUD/USD pair hovered around 0.7030 on Thursday, as the Australian Dollar failed to extend gains amid steady US labor market data. US initial jobless claims fell by 4,000 to 226,000 for the week ending June 13, aligning closely with expectations of 225,000. Continuing claims rose to 1.81 million, slightly above consensus.
The data underscored the labor market’s resilience, despite signs of slowing hiring momentum. The Federal Reserve’s decision to hold rates steady at 3.50%-3.75% and Chair Kevin Warsh’s cautious remarks on inflation further supported the USD. Meanwhile, the AUD found limited support from eased geopolitical tensions after a US-Iran deal reduced energy supply risks.
Technical analysis showed AUD/USD trading near 0.70 on the 4-hour chart, reflecting muted market movement.