In May, non-farm payrolls increased 339,000, well above estimates, although a surge in the unemployment rate to a seven-month high of 3.7% suggested that labor market conditions were easing. The jobs report comes after the Federal Reserve skipped raising rates in June after lifting them at 10 straight meetings.
The Aussie dollar leapt over 1% against the dollar on Tuesday after a surprise central bank rate hike, while the yen hit its weakest in 15 years versus the euro, as Bank of Japan dovishness continued to weigh and before closely watched euro zone data. The Reserve Bank of Australia (RBA) lifted the cash rate to 3.85% and said "some further" tightening may be required to ensure that inflation returns to target in a reasonable timeframe.
So it definitely changes that dynamic." ALVIN TAN, HEAD OF ASIA FX STRATEGY, RBC CAPITAL MARKETS, SINGAPORE "Given the current macro climate, the policy recommendations don't really have much of an immediate impact in terms of expectations about where the RBA might be going and the pace of the hikes.