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AUD/USD trims losses but stays pressured near 0.7030
Australia added 39.5K jobs in August, but the unemployment rate rose to 4.6%, while a 5.15% US 10-year yield kept USD supported.
The Australian dollar steadied after a stronger labor report, with AUD/USD trimming losses on Thursday to trade near 0.7030, down 0.15% on the day, according to FXStreet. The pair remains weaker versus the US dollar as the greenback draws support from bond markets.
FXStreet cited Australia’s job growth of 39.5K in August, above the 20K expected, but also noted the unemployment rate increased to 4.6% from 4.5%. The mix of stronger job creation and a higher unemployment rate could still reinforce the case for a more restrictive monetary policy stance from the Reserve Bank of Australia, given the resilient labor market.
Support for the US dollar has been driven by higher interest-rate expectations, FXStreet said. The US 10-year Treasury yield rose to 5.15% earlier in the day, its highest level in 19 years, while US data showed initial jobless claims fell to 197K for the week ending September 19, below the 201K estimate.
Markets are also watching upcoming developments, FXStreet added. It pointed to investors’ focus on a meeting between US President Donald Trump and Chinese President Xi Jinping, where discussions are expected to include trade, AI, technology, Taiwan, and Middle East energy supplies, topics tied to Australian economic exposure to China.