The Australian Dollar (AUD) is up slightly this morning in response to another strong employment report out of Australia, Commerzbank’s FX Analyst Volkmar Baur notes.

Australia's economic problems to set a stage for a weaker Aussie

“After seemingly cooling off at the end of last year, the labor market has been adding jobs at a much faster rate in recent months. In July, another 58.2 thousand new jobs were created, almost three times the average for 2015-2019.”

“The unemployment rate rose slightly, from 4.1% to 4.2%, but this appears to be entirely due to a higher participation rate. A separate survey also showed that consumers' inflation expectations rose again in August to 4.5%, further away from the central bank's target.”