Aussie Dollar Holds Decline After Softer Jobs Data

The Australian dollar traded around $0.665 on Thursday, holding its losses from the previous session, as markets digested a softer-than-expected jobs report.

Data showed net employment fell by 5,400 in August against forecasts for a 21,500 gain, driven by a sharp drop of 40,900 full-time positions.

The unemployment rate held steady at 4.2% while the participation rate edged lower to 66.8%, signaling a gradually softening labor market.

Despite the weak print, markets imply only a 20% chance of a rate cut by the Reserve Bank of Australia at the September 30 meeting, with expectations rising to 70% for November, as inflation remains above target and policymakers signal caution.

Meanwhile, in the US, the Federal Reserve delivered a widely expected quarter-point cut and signaled two more this year but only one in 2026.

Fed Chair Jerome Powell stressed a cautious ‘risk management’ approach and no rush to ease further.