2026.06.2502:30:48UTC+00Australian Dollar Approaches 3- Month Low

The Australian dollar extended its decline below $0.690, nearing a three‑month low, as broad US dollar strength overshadowed a rebound in domestic labor market data. The Australian economy added 40,300 jobs in May, recovering from a revised loss of 40,600 jobs in April and beating market expectations for a 30,000 increase. The unemployment rate edged down to 4.4% from 4.5%, in line with forecasts.

The latest labor market figures followed Wednesday’s mixed consumer inflation data, which left markets split on the timing of the next interest rate move. A further Reserve Bank of Australia (RBA) hike is now seen as a 50% probability by year-end, rather than in August. RBA Deputy Governor Andrew Hauser said on Wednesday that the central bank still has more work to do to return inflation to its 2–3% target band, signaling that additional policy tightening may be required as underlying price pressures remain elevated.

At the same time, the US dollar stayed broadly firm, with investors continuing to price in Federal Reserve interest rate increases later this year.