A labour market report in line with expectations should further embolden the RBA. After all, it had previously stressed that while it was bringing inflation back towards its target, it was also keeping an eye on the historically tight labour market. 

If inflation also continues to fall towards its target - the next release of the monthly index is scheduled for the end of September – there is much evidence to suggest that the RBA has done a lot of things right with its interest rate pause. 

As soon as the recession in the US becomes more apparent, as our economists expect, the Aussie should therefore also benefit again.