As long as Australian Employment Change stays low, AUD/USD remains lower than expected. 33.5k economic data, instead of the predicted 35k and 40.9k layoffs in July. The number of people without jobs has increased from 3.4% to 3.5%.

The RBA won’t be happy with slow employment data (RBA). The RBA can’t just raise rates. The OCR has been extended to 2.35 per cent by the RBA. To stop inflation, Philip Lowe will raise interest rates on loans. Also, the earlier advice that the current target for interest rates is 3.85% to prevent the price index from going up will make the economy less liquid.
The US dollar index (DXY) is bullish after a lacklustre performance. Before US Retail Sales data comes out, the DXY wants to return to 110. From what we know so far, retail demand hasn’t gone up. Consumer demand that stays the same will give the Fed trouble and show people losing faith in the economy.

The DXY is getting more attention as the chances of a Fed rate hike rise. Even though gas prices have decreased, higher-than-expected headline inflation has made Fed policymakers nervous. The Fed will announce tighter rules until inflation goes down for a while.

Conclusion

Even though Australian employment data aren’t excellent, AUD/USD is getting closer to 0.6800. The Australian dollar is happy that China’s state-owned banks are lowering deposit rates.