The Australian dollar steadied around $0.673, halting a recent decline as investors reacted to the latest jobs figures. Data showed that Australia added more jobs than expected in June amid high vacancies and strong participation rate, although the unemployment rate edged up to 4.1% from 4%.
The Reserve Bank of Australia is expected to hold interest rates steady in August, but some traders continued to bet on another rate hike amid persistent inflationary pressures and a tight labor market. Minutes from the central bank's last meeting showed that policymakers emphasized the need to remain vigilant about upside risks to inflation, adding that significant price increases could require substantially higher rates.
The RBA is also anticipated to ease policy much later than other major central banks. Externally, the aussie benefited from a weaker US dollar on bets that the Federal Reserve will deliver multiple rate reductions this year.
Source: Trading Economics
