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AUD/USD holds near 200-day support as RBA hike expectations rise

Australia’s August jobs report showed job gains of 39.5K and participation improvements, supporting a 25 basis point RBA hike to 4.60% next week.

Reported · Written up by our desk · Major Pairs

Brown Brothers Harriman strategist Elias Haddad says AUD/USD is trading near the 200-day moving average support around 0.7022 as broad US Dollar strength weighs on the pair.

FXStreet reports that Australia’s August labor force report reinforced expectations for a 25 basis point Reserve Bank of Australia hike to 4.60% next week, with the move described as about 90% priced in.

Haddad pointed to stronger-than-expected job gains, with employment change coming in at plus 39.5K versus plus 20K consensus and minus 15.9K prior, driven by part-time hiring.

The unemployment rate rose 0.1 percentage point to 4.6% versus 4.5% expected, which Haddad said can be linked to higher participation rather than a sudden loosening, and he argued that the rising odds of further RBA tightening support AUD/USD alongside Australia’s longer-term commodity exposure.

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