AUD/USD picks up after Australian jobs' setback, returns above 0.6550

• The Aussie Dollar shrugs off a downbeat Australian Employment report and returns above 0.6550.
• Net job creation declined by 5.4K in August, against expectations of a 22K increase.
• The US Dollar's recovery has lost momentum amid the positive market sentiment on Thursday.

The Australian Dollar has turned positive on daily charts, as the risk appetite has offset the impact of downbeat Australian employment figures seen earlier today. The Pair found support at 0.6615 lows to return above 0.6550, although it is still well below the YTD highs, at 0.6707 hit on Wednesday.

Earlier on Thursday, the Aussie Dollar extended losses from the mentioned YTD high, as the Australian Bureau of Statistics revealed that net employment fell by 5.4K in August, against expectations of a 22K increase, and following a 26.5K increment in July. The Unemployment rate, however, remained steady at 4.2%.

The US Dollar bounced from lows following the Fed's decision

The pair was already on its back foot amid a stronger US Dollar in the aftermath of the Federal Reserve's monetary Policy decision. The bank met market expectations and cut the federal funds rate by 25 basis points to the 4.0%-4.25% range, and hinted at further rate cuts in the coming months.

The USD tumbled immediately after the decision to bounce up later on, as investors delved into the policymakers' divergence on rate projections and Fed Chairman Powell's less dovish tone at the press conference. 

Powell reiterated his concerns about the higher inflation pressures stemming from tariffs, which, in his opinion, will materialize at the end of the year and the beginning of 2026, and suggested that he is in no hurry to cut rates, limiting investors' enthusiasm about a steep easing cycle.