19.09.202502:37:14UTC+00Aussie Dollar Declines for 3rd Session

The Australian dollar fell to approximately $0.660 on Friday, marking its third consecutive decline following an eleven-month high reached earlier in the week. This downturn sets the stage for the currency's first weekly loss in four weeks, largely influenced by a weaker-than-anticipated employment report for August. The data revealed an unexpected drop in employment, bolstering expectations for a potential rate cut by the Reserve Bank of Australia (RBA) later in the year. Current market sentiment reflects a 20% probability of a rate adjustment in September and a 70% likelihood in November. The inflation report for the third quarter, scheduled for release in October, will be crucial, as the central bank has indicated that monthly inflation figures are less reliable. Additionally, investors are keenly awaiting the publication of next week’s Purchasing Managers' Index (PMI) data to better assess Australia's economic condition. The Australian dollar is further pressured by the strengthening US dollar, which benefited from a Federal Reserve stance that was less dovish than anticipated. Fed Chair Jay Powell characterized the recent quarter-point rate cut as a precautionary measure in the face of a softening labor market, while emphasizing there is no urgency for further easing. The US dollar was also bolstered by a decrease in new jobless claims, which countered the previous week's increase.