The Australian dollar rose to around $0.678 as upbeat jobs data suggested the economy remains strong, giving the Reserve Bank of Australia room to hold policy.

Data showed that Australian employment increased by 47,55 in August, way above forecasts of 25,000.

Meanwhile, the unemployment rate stayed at a two-and-a-half year high of 4.2%.

Markets currently do not see the RBA cutting interest rates until at least December, with some economists expecting the first move to come as late as the second quarter of 2025.

However, an aggressive US rate cut will likely add to the chance of an earlier easing from the RBA. The US Federal Reserve delivered an outsized half percentage point interest rate cut to start its easing cycle, the first rate reduction since the early days of the Covid pandemic.