Australian Dollar Holds Steady as August Unemployment Rises to 4.6% Despite Hiring Beat

The Australian dollar traded largely rangebound following mixed August labor data that showed the unemployment rate unexpectedly climbed to 4.6%, its highest level since late 2021. Headline employment beat expectations with an increase of 39,500 jobs, recovering from July's revised 15,800 decline. However, gains were entirely driven by part-time roles, which surged by 45,800 as full-time employment fell by 6,300. The jobless rate rose primarily because the participation rate climbed to 67.1%. Despite signs of expanding labor supply and cooling conditions, economists still anticipate a potential Reserve Bank of Australia cash rate hike from 4.35%.