The Aussie is trading on the strong side after a stronger-than-expected August jobs report in Australia. Economists at ING analyze AUD’s outlook.
USD remains supported post-Fed
Employment rose 64.9K after July’s negative reading, and the unemployment rate was unchanged at 3.7%.
Markets are pricing in a mere 9 bps of tightening to the peak, even after the strong jobs figures, meaning there is ample room for a hawkish repricing and AUD to benefit from it. Still, the USD/US activity data story remains much more important for AUD/USD, and we see the pair being capped below 0.6500 for the remainder of September as the USD remains supported post-Fed.
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