RBA Hike Expectations Soar Amid Strong Aussie Jobs Data

Australia's employment data for June has strengthened expectations of a Reserve Bank of Australia (RBA) hike, pushing cash rate futures to almost fully price in a move to 4.60% by year-end.

Brown Brothers Harriman's Elias Haddad notes that AUD/USD is consolidating near 0.7000 due to solid June job gains, but sees risks skewed toward a more extended RBA pause.

The economy added 76.3k jobs in June, exceeding the consensus estimate of +15.0k and May's job gain of +44.0k, with full-time employment up +29.3k and part-time employment up +47.0k.

The unemployment rate remained unchanged at 4.4% for a second straight month, marginally above the RBA's projection of 4.2%, due to a participation rate rise of +0.3ppt to near a one-year high at 67.0%.