Australia’s labor market surprised to the upside in October. The data eases pressure on the Reserve Bank of Australia to deliver near-term rate cuts, lifting the Australian Dollar (USD), which strategists see climbing toward 0.68 by mid-2026, ING's FX analyst Francesco Pesole notes.

RBA to pause for longer after robust labor report

"Australian jobs data for October came in strong overnight. The unemployment rate dropped back to 4.3%, suggesting the 4.5% September jump was a blip. The economy added jobs at the fastest pace (42k) since April, entirely driven by full-time hiring."

"AUD is rallying as the prospect of more RBA easing continues to be delayed: we expect only one more cut in 2026. The Aussie dollar remains our favorite G10 currency into the new year, and we target a move to 0.68 by mid-2026."