The US dollar is sliding after the August JOLTS job openings data showed the largest one-month decline on record. Openings fell to 10.05m from 11.17m in an early sign that the jobs market is slowing.
It's something the Fed wants to see before pausing on rate hikes and it points to potential weakness in Friday's non-farm payrolls report.
In the aftermath of the data, the US dollar has slid lower and equities have rallied to highs. Earlier, the RBA hiked rates just 25 bps compared to 50 bps expected.
"The cash rate has been increased substantially in a short period of time," the RBA said. "Reflecting this, the Board decided to increase the cash rate by 25 basis points this month as it assesses the outlook for inflation and economic growth in Australia."
Here's the WSJ Fedwatcher after today's JOLTS data.
The euro has been a beneficiary of the data as it rises 120 pips on the day to 0.9945. It's now back to Sept 21 levels.
The Fed will want to see much more evidence of weakness than this but tomorrow we get the ADP jobs data and on Friday non-farm payrolls are due.
The bond market is certainly showing signs of a pivot itself with US 10-year yields down 6 bps today to 3.58% from a high of 4.02% a week ago.