AUD/USD declines to near 0.6530 even as Aussie employment data meets estimates

• AUD/USD falls to near 0.6530 as the Australian Dollar weakens despite Aussie labor market data meeting estimates.
• The Australian Unemployment Rate decelerated to 4.2%, as expected.
• Intensifying Fed interest rate cut expectations have battered the US Dollar.

The AUD/USD pair trades 0.3% lower to near 0.6530 during the European trading session on Thursday. The Aussie pair faces pressure as the Australian Dollar (AUD) underperforms even as the Australian labor market data remained upbeat in July.

Australian Bureau of Statistics (ABS) reported earlier in the day that the economy created fresh 24.5K jobs, almost in line with estimates of 25K, and significantly higher than the prior reading of 1K. The Unemployment Rate decelerated to 4.2%, as expected, from 4.3% in June.

Steady labor market conditions would allow the Reserve Bank of Australia (RBA) to avoid an aggressive monetary easing stance.

Meanwhile, the US Dollar (USD) trades cautiously ahead of the United States (US) Producer Price Index (PPI) data for July, which will be published at 12:30 GMT. The US Dollar Index (DXY), which tracks the Greenback's value against six major currencies, struggles to find ground near the weekly low of around 97.60.

Economists expect the US producer inflation to have grown at a faster pace on a monthly as well as an annual basis.

The US Dollar has been underperforming against its peers as traders are increasingly confident the Federal Reserve (Fed) will reduce interest rates in the September monetary policy meeting.