AUD Tumbles on Weaker Jobs Data, Rate Cut Bets Surge
The Australian Dollar (AUD) took a hit on Friday as disappointing domestic employment figures reignited speculation that the Reserve Bank of Australia (RBA) may cut interest rates sooner than expected.
The official data released this week showed that the Australian economy added far fewer jobs than anticipated in the latest monthly count, while the unemployment rate ticked higher. The numbers came in below market forecasts, prompting investors to adjust their expectations for monetary policy.
Currency markets responded quickly, with the AUD/USD pair dropping to a lower price as of Friday morning. Traders increased the probability of an RBA rate cut at the next policy meeting, with futures pricing now implying a higher chance of a reduction by this month.