The Australian dollar traded around $0.645 on Friday, set to lose nearly 2% for the week, pressured by a strengthening US dollar amid expectations of fewer rate cuts from the Federal Reserve.
Aussie dollar set to close week down by 2%
This shift in sentiment followed comments from Fed Chair Jerome Powell on Thursday, who stated that the central bank is in no rush to reduce rates due to the strength of the US economy. The Aussie also faced additional pressure from weaker commodity prices and ongoing concerns about China's economic slowdown.
Rates to remain unchanged
Domestically, Reserve Bank of Australia Governor Michele Bullock reiterated that interest rates will remain at current levels until inflation is under control. Meanwhile, Australian labor market data showed the unemployment rate held steady at 4.1% for the third consecutive month in October, in line with expectations, though employment growth was slower than anticipated, with only 15,900 new jobs added, well below the forecasted 25,000.
