AUD Surges as Strong Job Ads and Inflation Signal Hawkish RBA

The Australian Dollar (AUD) rebounded from two days of losses to hover around 0.7010 on Tuesday, driven by strong employment data and resurgent inflation in Australia. The ANZ, Indeed Job Ads rose by 2.0% month-over-month in July, marking the fourth monthly increase this year.

The positive labor market news, combined with renewed inflationary pressures, has strengthened expectations of a cautious stance from the Reserve Bank of Australia (RBA). According to RBA Assistant Governor Sarah Hunter, underlying inflation remains above the 2-3% target band, and job growth has held up 'not too badly' over the first half of the year.

The AUD/USD pair benefited from the US Dollar's weakness as geopolitical tensions eased amid hopes for a diplomatic breakthrough between the United States and Iran. Meanwhile, RBA Governor Michele Bullock emphasized that underlying inflation remains too high and warned of potential further increases driven by higher oil prices.