AUD/USD gains ground near 0.6700 on upbeat Australian job demand
- AUD/USD finds interim support near 0.6700 on surprisingly upbeat Australian job growth.
- Upbear Australian labor demand has prompted prospects of RBA’s further policy tightening.
- US bond yields bounce back despite firm Fed rate-cut prospects.
The AUD/USD pair manages to gain firm-footing near the round-level support of 0.6700 in Thursday’s European session. The Aussie asset discovers buying interest as signs of strong job demand from Australia’s Employment data for June has improved expectations of further policy-tightening by the Reserve Bank of Australia (RBA).
The Australian Bureau of Statistics reported that number of individuals hired in June surprisingly rose to 50.2K. Economists expected fresh payrolls at 20K against the prior release of 39.5K, downwardly revised from 39.7K. However, the Unemployment Rate rose to 4.1% from the estimates and the former release of 4.0%.
Meanwhile, the US Dollar (USD) witnesses some buying as US bond yields bounce back. The US Dollar Index (DXY), which tracks the Greenback’s value against six major currencies, gains ground neat four-month low at 103.70. 10-year US Treasury yields recover to near 4.19%.
US bond yields bounce back even though the Federal Reserve (Fed) is widely expected to start reducing interest rates from the September meeting. The Fed is also expected to cut interest rates twice this year against once signalled by officials in the latest dot plot.
Strong expectations for Fed rate cuts have been prompted by easing price pressures. The United States (US) core Consumer Price Index (CPI), which excludes volatile food and energy items, decelerated for straight third month in June.
