AUD Holds Near Ten-Week High Amid Weak Jobs Data
The Australian dollar (AUD) has held near its ten-week high despite weak jobs data in July. The AUD/USD pair trades at around 0.7150, close to Wednesday's peak.
Australia's labor report showed employment fell by 15,800, defying forecasts for a 15,000 increase. This was the first monthly decline since April. However, full-time employment still rose by 16,300, meaning the headline decline came from part-time roles.
The unemployment rate increased to 4.5% in July, but this matches the Reserve Bank of Australia's (RBA) own year-end forecast, so it was not a surprise to the central bank. The RBA has raised interest rates by 75 basis points since February and still sees inflation as too high.
The dollar index has been holding below 99.00, which has contributed to the AUD/USD pair's resilience. The US economy has shown signs of softness in recent data, including a decline in July payrolls and unemployment at 4.1%.