Forex News: Aussie Rises As Strong Labor Data Boosts RBA

Aussie Rises As Strong Labor Data Boosts RBA Rate Hike

(RTTNews) - The Australian dollar strengthened against other major currencies in the Asian session on Thursday, as strong labor data raised anticipation for the Reserve Bank of Australia or RBA interest rate hike.

In June, Australia's unemployment rate remained stable at 4.4%, which was in line with market predictions. Employment increased by 76.3K, surpassing the 15K prediction and building on the revised 44K rise for May.

This year, the central bank has already increased interest rates three times to 4.35%. Ahead of Friday's flash PMI numbers, traders continue to exercise caution.

Meanwhile, traders seemed reluctant to make significant moves amid concerns about the escalating Middle East conflict between the U.S. and Iran and the related surging crude oil prices after shipping traffic across the Strait of Hormuz has vastly diminished.

The conflict between the U.S. and Iran shows no signs of letting up. The U.S. Central Command said it successfully completed the 12th consecutive evening of strikes against Iran.

In the Asian trading today, the Australian dollar rose to nearly a 2-month high of 114.48 against the yen, from yesterday's closing value of 113.99. The aussie may test resistance around the 115.00 region.

Against the New Zealand and the U.S. dollars, the aussie advanced to a 10-day high of 1.2083 and a 2-day high of 0.7022 from Wednesday's closing quotes of 1.2020 and 0.6990, respectively. The aussie may test resistance around 1.22 against the kiwi and 0.70 against the greenback.

Against the euro and the Canadian dollar, the aussie edged up to 1.6264 and 0.9880 from Wednesday's closing quotes of 1.6327 and 0.9880, respectively. If the aussie extends its uptrend, it is likely to find resistance around 1.61 against the euro and 0.99 against the loonie.

Looking ahead, Canada retail sales data for May, U.S. Chicago Fed national activity index for June, U.S. weekly jobless claims data and Eurozone consumer confidence for July are slated for release in the New York session.

At 8:15 am ET, the European Central Bank's (ECB) monetary policy decision is set to be announced. The ECB is expected to keep policy rates steady.

Half-an-hour later, the ECB President Christine Lagarde will speak at a press conference about the inflation outlook and monetary policy.

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