Australian Unemployment Hits Five-Year High Amid Rate Hike Expectations

Australia's jobless rate unexpectedly rose to a five-year high in August, despite a solid rebound in employment. The unemployment rate now stands at its highest level since September 2021, according to data released on Thursday.

The unexpected increase in the jobless rate leaves markets still wagering on an imminent interest rate hike by the Reserve Bank of Australia (RBA) to fight inflation. Markets imply a 95% probability that the RBA will raise interest rates a fourth time next Tuesday to 4.6%, which would be its highest level since July 2013.

The Australian dollar, however, slipped another 0.3% to $0.7018, a seven-week low after heavy losses overnight.