Australian Dollar Stabilizes as US Dollar Slips Slightly; Market Eyes US PPI Data

Australian Dollar Gains Momentum After Employment Data as US Dollar Strength Looms

The Australian Dollar (AUD) halted its two-day losing streak against the US Dollar (USD) on Thursday, bolstered by mixed domestic employment data that showcased resilience in the Australian labor market.

The seasonally adjusted employment change for November revealed an increase of 35,600 jobs, significantly surpassing the market forecast of 25,000 and the previous reading of 12,100. This surge brought the total number of employed Australians to 14,535,500. Additionally, the unemployment rate dropped to 3.9%, its lowest level since March, outperforming market expectations of 4.2%.

Despite the robust performance of the AUD, the currency faces pressure from a strong US dollar, which gained traction following the release of the latest US inflation report. November’s Consumer Price Index (CPI) climbed to 2.7% year-over-year, up from October’s 2.6%, aligning with market predictions. The monthly CPI stood at 0.3%, while the core CPI—excluding food and energy—rose 3.3% YoY and 0.3% MoM, meeting expectations.

As the AUD/USD pair navigates these competing dynamics, market participants will closely watch for further economic indicators and central bank signals.