Australian Dollar Climbs On Upbeat Jobs Data

(RTTNews) - The Australian dollar strengthened against its major counterparts on Thursday, as strong jobs data out of country bolstered hopes for more interest rate hikes from the Reserve Bank of Australia.

Data from the Australian Bureau of Statistics showed that Australia employment increased by 75,900 in May, versus expectations of 15,000.

The jobless rate dropped to 3.6 percent from 3.7 percent in the prior month. Economists had expected the rate to remain steady at 3.7 percent.

In addition, China's central bank reduced a key lending rate to support real estate and domestic demand.

The People's Bank of China cut its one-year medium-term lending facility rate by 10 basis points to 2.65 percent, marking the first rate cut in 10 months.

Traders reacted positively to the U.S. Fed pausing its interest rate hikes following ten consecutive rate hikes, while also forecasting additional increases before the end of the year.

The aussie touched 96.40 against the yen, its highest level since September, 2022. The aussie is seen finding resistance around the 98.00 level.

The aussie was up against the greenback, at 0.6828. On the upside, 0.71 is likely seen as its next resistance level.

The aussie advanced to a 2-day high of 1.1035 against the kiwi, 1-1/2-month high of 0.9098 against the loonie and more than a 3-month high of 1.5848 against the euro, from its early lows of 1.0937, 0.9027 and 1.5992, respectively. The aussie may find resistance around 1.12 against the kiwi, 0.92 against the loonie and 1.53 against the euro.

Looking ahead, at 8:15 am ET, the European Central Bank is set to announce its monetary policy decision. The ECB is expected to raise the key refi rate by 25 basis points to 4 percent from 3.75 percent.

U.S. retail sales, industrial production and import and export prices, all for May, as well as weekly jobless claims for the week ended June 10 and business inventories for April will be featured in the New York session.