The Australian dollar weakened to around $0.70, hitting its lowest in seven weeks after the latest labor market figures tempered expectations of further interest rate hikes. The jobless rate rose to 4.6%, above forecasts of a steady 4.5% and the highest since late 2021, while the economy added 39,500 jobs versus a predicted 20,000 increase. The report was the final major economic release before the RBA’s September 28–29 meeting and showed signs of softening in a labor market the central bank has described as still “a bit tight,” potentially easing domestic inflation pressures. Markets still price an 86% chance of a 25-bp hike to 4.60% in September, down from 95% before the jobs report, while the odds of another hike fall to 44% for November. Elsewhere, the firmer US dollar added pressure on the Aussie as stronger-than-expected economic data reinforced bets for further Fed rate hikes. Rising oil prices also dampened global risk sentiment after Iran cast doubt on progress in peace talks.