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Australian dollar slips after July job losses and higher unemployment
AUD is down 0.17% near 0.7110 against the US dollar after July employment showed 15.8K layoffs and unemployment rose to 4.5%.
The Australian dollar weakened in early European trading, holding near 0.7110 against the US dollar, down 0.17% from recent levels, as fresh labor market data kept pressure on the currency, according to FXStreet. FXStreet said the AUD fell sharply in the Asian session after Australia’s July employment report showed employers laid off 15.8K workers versus expectations for 15K new jobs, and Australia’s unemployment rate climbed to 4.5% from a 4.4% forecast. The report also added to expectations that weaker domestic employment could temper Reserve Bank of Australia interest rate-hike odds, FXStreet noted, even as RBA officials have previously flagged upside inflation risks and the need for higher rates. Meanwhile, sentiment shifted more risk-on after the US Treasury said it would accelerate long-dated bond-buying operations, including at least doubling liquidity-support buybacks for 10 to 30 year securities, to help address market liquidity and stability concerns. FXStreet added that AUD/USD was trading around 0.7115, above the 20-day exponential moving average near 0.7056, with the relative strength index at 63.6 remaining in bullish territory but not signaling overbought conditions yet.