The Australian dollar strengthened alongside bond yields following robust employment data, indicating a resilient labor market. This development dampened expectations for an interest rate cut by the Reserve Bank of Australia.
The AUD/USD pair increased by 0.4% to trade at 0.6693, compared to 0.6668 prior to the data release. Meanwhile, the yield on three-year Australian government bonds rose by as much as 8 basis points to 3.84%, marking the highest level since the end of July. Before the data release, the yield was at 3.74%.
