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Australia and NZ dollars gain as strong data improves outlook

The Australian dollar managed to recover from early losses having bounced back from a low. Overnight, the Aussie had reached high after the Federal Reserve’s decision to reduce rates by 50 basis points. The AUD/USD pair has seen a surge following Australia’s robust employment figures, where 47,500 jobs were added, significantly beating the forecasted 25,000. This marks the third consecutive month of employment gains, which has helped maintain the unemployment rate at 4.3%. Traders are likely eyeing upcoming central bank meetings for further direction. The strength in hiring reflects a tight labour market, which could support the Reserve Bank of Australia’s (RBA) stance against cutting rates in the near future. Learn more about the reasons behind the Australia and NZ dollars strengthened.

why Australia and NZ dollars strengthened

Disclaimer:

While traders in both countries are positioning for rate cuts, the RBA’s relatively stronger labour market and the RBNZ’s more immediate concerns suggest a divergent path for these currencies. The Australian dollar may continue to find support from strong domestic data, while the kiwi dollar could remain under pressure as New Zealand’s central bank prepares for a more aggressive easing cycle. Traders are advised to prioritize proper risk management to make well-informed trading decisions.

Publication date:

2024-09-27 17:24:19 (GMT)

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