AUD/USD falls as Australia posts 5.4K job losses, unemployment steady at 4.2%

AUD/USD has weakened following Australia's disappointing August labor market report, with employment contracting by 5,400 positions against expectations of a 22,000 increase. Despite the job losses, the unemployment rate remained unchanged at 4.2% due to a decline in the participation rate to 66.8% from the anticipated 67.0%. The composition of employment changes reveals severe weakness, with full-time positions plummeting by 40,900 while part-time employment rose by 35,500. This marks a sharp reversal from July's robust 60,500 full-time job gains. The soft labor data increases pressure on the Reserve Bank of Australia to consider monetary easing, particularly as the participation rate decline prevented a spike in unemployment. Market participants are reassessing RBA rate expectations, with the Australian dollar vulnerable to further losses. Immediate support for AUD/USD lies at 0.6400, while resistance emerges at 0.6480. The pair's outlook remains bearish pending stabilization in employment trends.