AUD/USD in focus as Australian jobs data follows mixed CPI report

AUD/USD faces a pivotal session as traders await Australia's June employment report, which will play a critical role in shaping Reserve Bank of Australia policy expectations. The release follows a mixed May CPI report that showed headline inflation undershooting expectations while core inflation came in hot at 3.6%, exceeding forecasts. The elevated core reading has kept the RBA's August meeting firmly 'live' for a potential rate decision, adding uncertainty to the Australian dollar's near-term trajectory. A strong jobs print could reinforce the case for the RBA to hold rates steady or even consider tightening, potentially supporting AUD/USD, while a weak labor market reading might offset the hawkish core inflation signal and weigh on the pair. Traders should monitor the unemployment rate and employment change figures closely, as they will provide the RBA with additional context alongside the sticky core inflation data. The combination of these two key data points will likely determine market pricing for August monetary policy action and drive AUD/USD volatility in the Asian session.