AUD Holds Gains Despite Soft Australian Labor Report
The Australian Dollar has maintained its gains against the US Dollar due to broad USD weakness despite a soft labor market report in July. According to Brown Brothers Harriman's (BBH) Elias Haddad, AUD/USD is holding onto yesterday's gains triggered by the US Dollar's decline.
Australia's July labor force report showed an unexpected loss of 15.8k jobs, with a rising unemployment rate and falling hours worked indicating weaker labor demand. The economy had been expected to add 12k jobs in July, but instead lost 80.2k less than the previous month.
Easing labor conditions are seen as supporting the Reserve Bank of Australia's decision to remain on hold for some time, with attractive carry and commodity exposure remaining key tailwinds for the Australian Dollar.