AUD/USD recovers early losses driven by weak Aussie employment data
The AUD/USD pair claws back its early losses and recovers to near 0.6500 during the European trading session on Thursday. The Aussie pair attracts bids after sliding to near 0.6480.
Earlier in the day, the Australian Dollar faced significant selling pressure after the release of the labor market data for September, which signaled slowdown in the job demand.
The Australian Bureau of Statistics reported that the Unemployment Rate accelerated to 4.5%, the highest level seen since November 2021. Economists expected the jobless rate to have remained steady at 4.3%. Fresh workers added by employers during the period were recorded at 14.9K, lower than expectations of 17K. In August, 11.8K employers were laid-off.
Meanwhile, the US Dollar (USD) trades cautiously amid firm Federal Reserve (Fed) dovish bets and ongoing United States (US) government shutdown.
At the press time, the US Dollar Index (DXY), which tracks the Greenback’s value against six major currencies, trades close to the weekly low around 98.50.
According to the CME FedWatch tool, traders see a 94.6% that the Fed will reduce interest rates by 50 basis points (bps) to 3.50%-3.75% in the remaining year.
Source : Fxstreet.com
