The Australian dollar weakened below $0.650 on Thursday, reversing the previous session’s gains, after a softer jobs report revived expectations of an RBA rate cut. The Australian Bureau of Statistics reported that the unemployment rate rose more than expected to 4.5%, the highest in nearly four years, while employment increased by just 14,900, below forecasts for a 20,000 gain. The data signaled further labor market loosening, ramping up bets that the Reserve Bank may resume rate cuts as early as next month. Investors now price in a 71% chance of easing, up from 40% before the release. Attention now turns to third-quarter inflation data due in less than two weeks, which will be key to shaping expectations for the November policy meeting. Governor Michele Bullock earlier noted that stronger consumer spending and higher readings in some parts of inflation had prompted policymakers to reconsider the need for additional rate cuts.
