AUDUSD Retreats from 0.726 High After Soft Jobs Data Fuel RBA Pause Bets

AUDUSD has fallen back from its four-year high of 0.726 after weaker-than-expected Australian jobs data pushed unemployment to 4.5% and reinforced expectations of an RBA pause. The currency had rallied on the central bank’s three consecutive 25bp hikes that lifted the cash rate to 4.35% via an 8-1 May vote, with markets pricing a 75% chance of an August move and a 4.60% peak. RBA minutes and speeches highlighted persistent inflation risks from Middle East oil shocks and warned expectations could become entrenched, but softer retail sales and labor prints have since trimmed the yield advantage and left AUDUSD vulnerable ahead of further data releases.