Rising unemployment in Australia reduces expectations for an RBA rate hike in June, pressuring the currency pair.
The Australian Dollar declined against the US Dollar, trading near 0.7140 in Asian hours after weaker-than-expected jobs data. Australia’s unemployment rate rose, dampening hopes for another Reserve Bank of Australia interest rate increase next month.
Prior to the release, markets had priced in a potential June hike, but the soft labor figures suggest the RBA may adopt a more cautious stance. The pair had hovered around 0.7150 before the data, reflecting mixed sentiment ahead of the print.
The immediate reaction saw the AUD/USD extend losses, as traders reassessed the central bank’s policy outlook amid signs of economic cooling.