Aussie’s Longest Weekly Gain Since 2012 Pauses Before Job Report

Australia’s dollar pared a rally that’s put the currency on course to match its longest stretch of weekly gains since 2012, before the nation reports employment data.

The Aussie is set to complete a seven-week rally amid the backdrop of strong U.S. hiring, expectations Japan will unveil stimulus and speculation the Bank of England will lower interest rates Thursday. It rose earlier this week to the highest level since before the Reserve Bank of Australia cut rates in May. 

“The recent uplift in risk sentiment has kept the currency pair well supported,” said Rodrigo Catril, a currency strategist at National Australia Bank Ltd. in Sydney. “However, it has struggled to maintain a level above the 76 cent mark, suggesting further gains may be harder to come by. The Australian dollar is probably more vulnerable to a soft labor force report, while the uplift from a strong report is probably going to be limited. ”  
 
The Aussie fell 0.2 percent to 75.95 U.S. cents as of 9:02 a.m. in Tokyo. It rose to 76.58 on Tuesday, the highest since May 3, when the central bank lowered its benchmark rate to a record low 1.75 percent.

Australia is expected to have added 10,000 jobs in June, with the unemployment rate rising to 5.8 percent from 5.7 percent, according to the median estimates of economists surveyed by Bloomberg before the data are released Thursday.

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