- AUD/USD is fetching strength to cross 0.6760 as aussie jobless rate has trimmed to 3.5%.
- The Australian economy generated 88.4k employment opportunities in June.
- The DXY is aiming to recapture a 19-year high at 108.56 on the soaring inflation rate.
The AUD/USD pair is putting efforts to overstep 0.6760 after the release of the upbeat aussie employment data. The Australian Bureau of Statistics has reported the Employment Change at 88.4k while the Unemployment Rate has trimmed to 3.5%.
As per the market consensus, the Australian economy was expected to report an addition of 25k jobs in its labor market. Also, the jobless rate was seen at 3.8%.
This is going to delight the Reserve Bank of Australia (RBA) in dictating more policy tightening measures later. It is worth noting that the RBA elevated its Official Cash Rate (OCR) by 50 basis points (bps) last week. Officially, the OCR stands at 1.35% but still needs more elevation to cater to soaring price pressures. The Australian inflation rate has been recorded at 5.1% for the first quarter of CY2022.
Meanwhile, the US dollar index (DXY) is advancing sharply to recapture a 19-year high at 108.58 as the higher inflation rate has infused fresh blood into the same. The US Consumer Price Index (CPI) has climbed to 9.1% on an annual basis, however, the core CPI that excludes oil and food prices has trimmed minutely to 5.9% vs. 6% in the former release. It would be worth watching whether the Federal Reserve (Fed) will follow the footprints of the Bank of Canada (BOC) and will elevate its interest rates by 100 bps to 2.50-2.75%.
