The Australian dollar weakened around $0.664 on Thursday, easing from a three-month high, as investors weighed the latest labor market figures for clues on the Reserve Bank’s policy direction. The economy unexpectedly lost 21,300 jobs in November, the most in nine months, driven entirely by full-time positions, while fewer people entered the workforce, keeping the unemployment rate steady at 4.3%. The softer-than-expected data suggest a gradual easing in the labor market, prompting traders to push back expectations for rate hikes to the second half of 2026, from earlier bets on May. However, the central bank still views the labor market as tight, pointing to high job vacancies, widespread staffing shortages, rising labor costs, and indicators that the economy remains near full employment. Elsewhere, the AUD found support from a weaker US dollar after the Federal Reserve cut rates by 25 bps, while Chair Powell’s post-meeting comments surprised markets expecting a more hawkish tone.
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Trade of The Day – GBP/AUDJanuary 30, 2026
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