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AUD/USD pushes to highest level in four weeks as global risk improves

Australia’s June jobs report on Thursday is expected to lift employment by 15k, with the unemployment rate forecast to hold at 4.4%, and the data could shift expectations for an RBA rate hike in August.

Reported · Written up by our desk · Major Pairs

AUD/USD is trading at its highest level in four weeks after breaking higher on improving global risk sentiment in Asia, a broad US dollar weakening, and a jump in copper prices tied to worsening supply disruptions in Chile, according to Action Forex.

Support also came from New Zealand, where stronger-than-expected inflation data boosted the Kiwi and helped underpin antipodean currencies more broadly, though the article says the move is driven largely by external factors.

Whether the Aussie can extend the rally hinges on Australia’s labor market report due Thursday. Action Forex notes that net employment progress has been limited in recent months, with a 40.3k rebound in May after a 40.7k decline in April, and cites consensus expectations for June employment to rise by 15k and unemployment to stay at 4.4%.

The jobs data could also materially affect Reserve Bank of Australia interest rate expectations, with the market currently pricing only about a one-in-five chance of a fourth rate hike in August, the outlet adds. Technically, the piece flags a break above 0.7020 as supportive of a rebound, while rejection around 0.7022 followed by a break of 0.6964 would suggest the move has turned into a correction.

Latest closeCopper $6.287 ▼0.1%

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