The Australian dollar strengthened in the European market on Thursday against a basket of major currencies, extending gains for the second consecutive session against the US dollar and hitting a two-week high after the release of strong Australian labor market data.

The figures showed persistently tight labor conditions, adding pressure on the Reserve Bank of Australia (RBA) and reducing expectations for a rate cut in December.

Price Overview

**AUD/USD exchange rate:** The Australian dollar rose about 0.4% to **0.6565**, its highest level since October 24, from an opening price of **0.6541**, after touching an intraday low of **0.6533**.

On Wednesday, the Australian dollar gained more than 0.2% against its US counterpart, marking its third daily rise in the past four sessions amid improved risk appetite in global markets.

Australian Labor Market

Data from the Australian Bureau of Statistics on Thursday showed that **net employment jumped by 42.2 thousand in October**, the fastest pace since April, easily beating market expectations for a gain of 20 thousand. Septembers employment figure was revised down from 14.9 thousand to 12.8 thousand.

The report also showed that the **unemployment rate fell to 4.3%**, below market expectations of 4.4%, after recording 4.5% in September.

These results confirm that Australias labor market remains tight, reinforcing the case for the RBA to maintain its restrictive monetary policy stance well into 2026.

Australian Interest Rates

Following the data release, market pricing for a **25-basis-point rate cut in December** fell from **35% to 15%**.

Investors now await further data on inflation, employment, and wage growth to reassess the outlook for monetary policy in Australia.