19.03.202601:59:56UTC+00Aussie Edges Higher on Strong Jobs Data

The Australian dollar inched up to around $0.704 on Thursday, after falling more than 1% in the previous session, as investors digested the latest labor market data. February employment rose by 48,900, far exceeding the consensus forecast for a 20,000 increase and highlighting the ongoing strength of the jobs market. However, the unemployment rate unexpectedly ticked up to 4.3%, suggesting a more nuanced picture. Even so, unemployment remains low by historical standards, supporting the Reserve Bank of Australia’s view that the economy can absorb tighter monetary policy.

The figures did little to materially alter interest rate expectations, with markets still split on the possibility of another rate hike as early as May. At the same time, the central bank cautioned that the intensifying conflict in the Middle East presents a material risk to the domestic outlook and could trigger a more severe global shock, while persistently elevated inflation is likely to weigh further on some households and borrowers. Nonetheless, policymakers stressed that Australia’s financial system remains broadly resilient.