AUD/USD Recovers After Weak Jobs Report
The Australian Dollar faced pressure after a weak jobs report in July, showing an unexpected decline in employment and a high unemployment rate.
The data revealed that employment dropped by 15,800, while the unemployment rate rose to 4.5%, its highest level in almost five years.
However, the AUD/USD exchange rate recovered later in the morning due to broader US Dollar softness, limiting the damage and leaving the pair marginally higher on the day.
Westpac economist Ryan Wells noted that the rising trend in unemployment and underemployment was evidence of building labour-market slack, while Oxford Economics Australia chief economist Ben Udy said the figures were slightly weaker than expected, reducing near-term pressure for another interest rate increase.