Australian Dollar Falls to Two-Week Low
The Australian dollar fell below $0.70, hitting a two-week low after higher unemployment and unexpected job cuts in September prompted traders to scale back bets on further rate hikes. The jobless rate came in at 4.7%, above the 4.6% forecast, while the previous month's reading was revised up from an initial 4.6%. The economy also shed 39,300 jobs, compared with expectations for a 20,000 gain, although full-time employment climbed by 34,400. The figures suggested the labor market may be loosening after the Reserve Bank of Australia raised its cash rate by 1 percentage point to 4.60% this year to rein in inflation, marking one of the most aggressive tightening cycles among developed economies. Markets now see less than a 20% chance of a November hike, down from 35% earlier in the day, while the odds of a December move fell to 40% from 60%. Rate markets have also pushed back expectations for further tightening, with May 2027 carrying the highest implied probability of a hike at 80%.
70, hitting a two-week low after higher unemployment and unexpected job cuts in September prompted traders to scale back bets on further rate hikes. 6%. The economy also shed 39,300 jobs, compared with expectations for a 20,000 gain, although full-time employment climbed by 34,400. 60% this year to rein in inflation, marking one of the most aggressive tightening cycles among developed economies.
Markets now see less than a 20% chance of a November hike, down from 35% earlier in the day, while the odds of a December move fell to 40% from 60%. Rate markets have also pushed back expectations for further tightening, with May 2027 carrying the highest implied probability of a hike at 80%.