AUD Surges to One-and-a-Half Week High on Upbeat Aussie Jobs Data
The Australian Dollar surged to a one-and-a-half-week high against the New Zealand Dollar after the release of upbeat jobs data in Australia. The employment details showed that the number of employed people rose by 76.3K, surpassing even the most optimistic estimates.
According to the Australian Bureau of Statistics (ABS), Australia's Unemployment Rate remained at 4.4% in June. Strategists at Brown Brothers Harriman note that market pricing still leans toward further tightening, with 'RBA cash rate futures imply 60% odds of one final 25bps hike by year end to 4.60%'.
The Reserve Bank of Australia (RBA) is expected to raise interest rates again, which has provided a boost to the AUD and AUD/NZD cross. However, expectations that the Reserve Bank of New Zealand (RBNZ) will deliver another rate hike in September might cap further gains for the AUD.