The Australian dollar strengthened to around $0.655 on Thursday, extending gains to a two-week high after solid employment data dampened prospects of near-term rate cuts.
Figures from the Australian Bureau of Statistics showed employment surged by 42,200 in October, more than double forecasts, as firms added 55,300 full-time jobs.
The jobless rate also eased to 4.3%, below forecasts and down from a near four-year high of 4.5%, while the participation rate held steady at 67%.
The robust figures reinforced the Reserve Bank of Australia’s view that the labor market remains tight, giving policymakers little urgency to ease policy further after three rate cuts this year.
Markets swiftly priced out expectations of another reduction, with odds of a May 2026 cut dropping to 32% from nearly 70% before the release.
The data also highlighted firmer consumer demand and renewed confidence in the economy, aligning with signs of improving sentiment and a steady recovery in the housing market.