The AUD/USD pair surged to an almost two-week high around 0.6580 during Thursday’s European session, after upbeat Australian labor market data boosted demand for the local currency.
According to the Australian Bureau of Statistics, the economy added 42.2K new jobs in October, far exceeding market expectations of 20K and the previous month’s 12.8K gain. The unemployment rate also improved slightly, falling to 4.3% from 4.5%, better than forecasts of 4.4%.
Stronger employment growth has reinforced optimism about the resilience of Australia’s labor market and could reduce expectations for further interest rate cuts by the Reserve Bank of Australia (RBA). So far this year, the RBA has lowered its Official Cash Rate (OCR) by 75 basis points, bringing it to 3.6%.
Meanwhile, the US Dollar (USD) weakened broadly as traders anticipate more rate cuts by the Federal Reserve (Fed) before the end of the year. The US Dollar Index (DXY) dropped toward 99.30, marking its lowest level in nearly two weeks.
According to the CME FedWatch Tool, markets are pricing in a 67% probability that the Fed will cut rates by 25 basis points to a range of 3.50%–3.75% at its December meeting — which would mark the third consecutive rate cut this year.
Australian Dollar Performance Today
| Base Currency | USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF |
|---|---|---|---|---|---|---|---|---|
| AUD | +0.38% | +0.17% | +0.17% | +0.38% | +0.32% | — | +0.29% | +0.13% |
The Australian Dollar (AUD) emerged as the strongest major currency, outperforming all its peers — particularly the US Dollar.
(Note: In the table, selecting a base currency from the left and a quote currency from the top shows their percentage change. For instance, AUD/USD +0.38% means the Australian Dollar gained 0.38% against the US Dollar.)
Outlook
The combination of a robust Australian jobs report and dovish Fed expectations has fueled the AUD/USD rally. If domestic data continues to surprise to the upside, the Aussie could remain supported, while a softer USD backdrop may further strengthen the pair in the near term.