July labor data misses forecasts, pushing unemployment to 4.5% and reducing bets on further RBA rate hikes.
The Australian Dollar fell 0.22% to 0.7110 after July employment data showed a loss of 15.8K jobs, defying expectations of a 15K gain. The unemployment rate climbed to 4.5%, above the forecasted 4.4%.
Markets had anticipated a stable labor market following June’s 4.4% unemployment rate. The weaker figures suggest cooling economic activity, easing pressure on the Reserve Bank of Australia to tighten policy further.
Analysts noted the data supports a pause in rate hikes, though Australia’s commodity-linked fundamentals and carry appeal may cushion further declines.